Solana (SOL): Collaborations pull market volume over $1 Billion
After some days of horrendous activity, Solana [SOL] is back on horseback with $1 billion worth of trading volume
. Considered one of the fastest growing ecosystems in the crypto space, SOL lost $1 billion in volume as the price dropped from $33.44 to $30.62 on September 7th. On the same day, Solana confirmed its partnership with two separate Decentralized Finance (DeFi) platforms. According to the world's largest DApp store, DappRadar, Soldex and AlfProtocol are the platforms that work with Solana.
On the same page
Although both protocols already exist on Solana, the latest collaboration aims to improve the DeFi experience of Solana loyalists. As for Soldex, it can assist users in accessing user-friendly Decentralized Exchanges (DEXes). On the other hand, AlfProtocol can help optimize productive farming systems on the Solana network.
DappRadar also notes that the partnership could play an important role in increasing Solana's user base. Besides the increase in trading volume, the price of SOL also increased. At press time, the cryptocurrency is trading at 35.10—higher than it was before the drop.
So, does the goal of increasing users have any effect?
Do not exceed the limit
According to Santiment, Solana's social dominance increased after the price increase. The index, which was only up 2.48% on September 8, has since risen to 5.26% by press time.However, that is not the case with whale activities. On-chain data shows that the whale supply rate of more than $5 million has decreased. While it was 43.14% on September 8, it fell to 42.99%.
From the 4-hour chart, SOL seems to have broken through the falling support on September 1. Additionally, it has also broken out of recent resistance with clear signs of an uptrend. The Relative Strength Index (RSI) status also reflects strong buying activity with values above 70. This increase may have contributed to the previously mentioned volume.
However, the continued upward momentum of the RSI could eventually lead to a reversal. At that point, it would represent an overbought level and a reversal could reverse the price movement or mark the start of a breast pattern.
Sep 10, 2022