- Solana price retests the $235 support level after a strong breakout from the $216 resistance barrier.
- This downswing will likely prepare the start for an 88% upswing for SOL.
- Reddit co-founder and Solana Ventures allocate $100 million for Web3 social media.
Solana price slowed down its ascent after a massive breakout from a crucial barrier. However, the current downswing will serve as a good buy opportunity for SOL to see explosive growth.
Web3 and $100 million initiative
Solana ecosystem has grown considerably over the past year. From yield farming, dApps to NFTs, tons of projects are making life easier for users, especially in terms of gas fees. While the demand seems to be reflected in the SOL price, the fundamentals are only getting stronger for the token.
On a similar note, Solana Ventures and Reddit co-founder Alexis Ohanian’s Seven Seven Six announced at a Solana conference that they would be allocating $100 million to support the decentralized media projects on Solana.
Although obscure decentralized social media already exists, none of them are at a level to compete with the social media giants. FTX CEO Sam Bankman-Fried signaled this support during the Breakpoint event in Libson as he stated that decentralized social media/Web3 “solves a lot of existing pain points, which are coming to the forefront of society right now.”
Solana price fumbles
Solana price was seen traversing a cup-and-handle pattern a few days ago. However, SOL triggered an 88% breakout as it produced a daily close above $216 on November 2. This move catalyzed a bull rally for SOL but failed to move beyond $260, suggesting that investors are booking profits.
While Solana price is hovering around $235 support floor, increased selling pressure will likely knock it down to revisit the $216 barrier. If SOL holds above this level and sees a resurgence of buyers, it would confirm a perfect retest and suggest that a move higher is around the corner.
In this case, investors can expect Solana price to rally past the November 6 swing high at $261 and zoom toward the 100% trend-based Fibonacci extension level at $310. This climb would constitute a 44% ascent from $216. However, clearing this barrier will propel SOL toward its intended target at $407, representing an 88% advance from $216. In some situations, SOL could extend this run-up and tag the 161.8% trend-based Fibonacci extension level at $430.
SOL/USDT 6-hour chart
While things are looking up for the Etheruem killer, a breakdown of the $216 support level will suggest an evolving narrative for SOL. If Solana price produces a lower low below the $200 psychological level, it will invalidate the cup-and-handle’s bullish thesis.
This development could likely trigger a potential crash to $178 or $166 footholds.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.