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The Solana price dropped over 2% in the past 24 hours to trade at $147.72 as of 3:39 a.m. EST on trading volume that surged 34% to $6.2 billion.
The retracement comes as SOL Strategies, a Canadian investment company, issued $500 million in convertible notes to buy and stake Solana tokens.
Why is no one talking about up to $500m of $SOL buy pressure coming from @solstrategies_?
Total: $500 M convertible-note facility
First draw: $20 million expected to close ≈ May 1 2025This means $SOL could get $20M net buy pressure from Sol Strategies alone at the beginning… pic.twitter.com/8rrAQyb9Ma
— gum (@0xGumshoe) April 23, 2025
The issuance was made to just ATW Partners, a New York-based investment firm.
SOL Strategies is a publicly traded company listed on the Canadian Securities Exchange, and its share price has surged 25% in the last 24 hours following the announcement, according to Google Finance data.
Solana Price Displays A Potential Bullish Trend Continuation
The SOL price has recently broken out of a well-defined falling channel, marking a potential trend reversal after a prolonged downtrend.
The 50-day Simple Moving Average (SMA) ($129.11) has been reclaimed as support, and the Solana price action now looks to challenge the 200-day SMA, a classic signal of a bullish phase transition, as GeckoTerminal data shows.
Meanwhile, the Relative Strength Index (RSI) is at 61.83, showing bullish momentum while still below overbought levels, leaving space for further gains.
Moreover, the Moving Average Convergence Divergence (MACD) indicator is also bullish, with the blue MACD line (4.94) crossing above both the orange signal line (3.11) and the zero line.
Rising histogram bars support this, typically signaling a strengthening uptrend. The breakout above the channel resistance is a bullish sign, suggesting a shift in market sentiment.
Currently trading around $147.72, SOL targets the next key resistance near the 200-day SMA at $181.13. This resistance aligns with a potential measured move of 22% from the breakout level, indicating a bullish continuation if momentum sustains.
However, failure to hold the current momentum might see the price of Solana retest the $129 support.
Meanwhile, investors are buying a new Solana token called Solaxy (SOLX), which 99Bitcoins, a popular crypto channel on YouTube with over 725K subscribers, says could soar 10x after launch.
A Promising Alternative To Solana?
Solaxy, a new crypto project in its presale phase, is positioning itself as the next evolution of the Solana ecosystem.
The project aims to address Solana’s network congestion issues by implementing off-chain processing mechanisms similar to Ethereum’s layer-2 solutions. This model has already been proven successful in scaling a blockchain through platforms like Arbitrum and Optimism.
By processing transactions off of Solana’s main chain, bundling them together, and submitting them to the mainnet for final verification, Solaxy’s system enhances overall efficiency.
Investors are backing this idea, having already poured over $31.4 million in its blockbuster presale.
🚨 Solaxy is now live in Upcoming Tokens! 🚨@SOLAXYTOKEN gives holders an opportunity to join the first-ever Solana Layer 2 blockchain.
Solaxy is set to enhance blockchain innovation through limiting congestion, reducing failed transactions, and improving scalability on SOL.… pic.twitter.com/satNF6zFNF
— Best Wallet (@BestWalletHQ) December 17, 2024
Once launched, Solaxy will also provide a platform where developers can build decentralized applications or launch new tokens without compromising Solana’s layer-1 capabilities.
Investors interested in participating in the presale can visit the official Solaxy website to buy SOLX tokens for $0.001704 each. Available payment options include BNB, ETH, USDT, or a bank card.
Solaxy also offers holders who stake SOLX a huge annual yield of 128%.
Interested investors will want to buy SOLX before the next presale price hike in less than 32 hours to secure the best deal.
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