Solana (SOL) has recovered over 30% and is the highest gainer for the day after hitting a bottom of $20.38 yesterday. SOL bounced overnight on Wednesday, outpacing its top rivals, including Bitcoin (BTC) and Ether (ETH) after the cryptocurrency market declined amidst news surrounding China’s crackdown on cryptocurrencies and mining.
Solana was among the top losers at the beginning of this week. It declined by more than 42% on Monday to trade a low of $20.38. Similarly, Bitcoin lost 19.07% in the same period while Ether, the second-largest cryptocurrency and Solana’s blockchain rival, dipped 24.75%.
The decline was short-lived as top cryptocurrency tokens ticked back after a few hours. Bitcoin bounced 19.44% to $34,400 from its sessional low of $28,800 and Ethereum rebounded by up to 20.29% to $2,045 after testing the $1,700 support zone.
Reasons for Solana’s quick recovery
Pyth Network announced it has added LMAX Digital, an institutional exchange operator, as its data provider. They stated on their Twitter account, “We are thrilled to announce @LMAX, the leading independent operator of institutional execution venues for FX and cryptocurrency trading, as the first institutional exchange joining @PythNetwork as a data provider!”
Pyth Network operates on Solana’s proof-of-stake blockchain protocol and it is optimized for scalability. Solana proposes to assist developers in creating decentralized applications (DApps) without having to design around performance bottlenecks.
Rumours that Solana would raise another $450 million to develop an ‘Ethereum Killer’ have also kept SOL’s bullish trend intact despite the market crash yesterday. Solana’s team is yet to confirm or deny the report.
SOL’s latest bearish trend saw the cryptocurrency test a triple-support confluence zone, providing day-traders with a psychological entry-level in addition to Solana’s development as a blockchain project. This indicator has also kept the price of Solana on a bullish trend.
What this means
Solana is a highly functional open-source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. The network aims to compete with the likes of well-established Ethereum and up-and-coming Cardano in the smart contract space.
The cryptocurrency is currently on a bullish trend and investors can take advantage of the current market condition by applying dollar-cost averaging when investing. SOL is trading at $31.26, up approximately 45% for the day, as of the time of writing this report.
