Solana, the powerhouse crypto, is on a roll, temporarily rocketing over 14% in the past day alone to hit around $163.50 as of May 16. Not just a flash in the pan, its monthly gains hover at an impressive 38%, outpacing heavy hitters like Bitcoin.
SOL Sees Remarkable Surge
A mix of elements fuels this ascent. First up, the drop in U.S. bond yields seems to have stoked a hunger for riskier bets like cryptocurrencies.
Secondly, Robinhood, the trading giant, is now using SOL to court European clients, broadening its crypto reach amidst legal problems back in the U.S. Just yesterday, Robinhood rolled out its first-ever crypto staking option tailored for its European audience.
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“Since launching at the end of last year, our customers in Europe have told us loud and clear that they want an app that provides local language support and products that help them earn additional passive income.”
Johann Kerbrat, VP and GM of Robinhood Crypto
This new service allows Robinhood’s customers to lock in their Solana for a tidy 5% yield right through the app. Other platforms like Kraken and Binance are in the game too, offering yields on SOL staking that range from 5% to 8%.
Solana Elevates User Engagement
The introduction of staking has likely spurred many to snatch up more SOL, dialing down its availability on the market and naturally nudging up its price. Plus, it’s not about buying, it’s about holding. The prospect of a steady 5% gain from staking is tempting enough to tighten supply.
There’s more on the Solana front. Infinex, a fledgling decentralized platform for perpetual contract trading, just brought Solana into its fold. Their latest figures show a Total Value Locked (TVL) of a huge 70,832,536.19 USDC.
The companies believe that this reflects growing user trust and a deepening engagement with the platform. Specifically, over 4.1 million USDC has been locked in Solana, emphasizing its solid standing in the community.
Technical Analysis
The SOL/USDt chart from TradingView shows a strong bullish movement at the beginning of yesterday, with SOL’s price rising sharply from about $150 to a peak near $166. Afterwards, there was a notable correction phase where the price declines, followed by a period of consolidation around the $162 level.
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Currently, SOL’s price seems to have stabilized around the $159 to $162 range, forming a consolidation zone. This stabilization occurred with relatively low volume, suggesting a decrease in active trading and uncertainty among traders about the next direction SOL’s price might take.
Given the recent price consolidation with reduced volume, the next moves for SOL will likely depend on renewed trader interest and market sentiment. If buying pressure resumes and the price can sustain above the current consolidation zone, an attempt to retest the $166 resistance might occur.
However, if sellers regain control and push the price below the current support at around $158, further declines could be possible, potentially testing lower support levels.
Cryptopolitan reporting by Jai Hamid.
