After bottoming out at $20.14 on Tuesday, SOL the 14th largest token by market size rose by more than 55%. Solana (SOL) outperformed most tokens, including Bitcoin and Ethereum, in an overnight rally among cryptocurrency assets on Wednesday. The rise followed a general crypto market correction, which was preceded by a severe plunge in response to China’s full-fledged crypto prohibition.
At the start of this week, Solana was one of the losers. After beginning Monday at $35.22, SOL/USD has dropped by more than 42%. In the same time span, Bitcoin fell 19.07% while Etherum, Solana’s rival, fell 24.75%.
However, after 48 hours of disorientation, all of the leading coins returned to their previous levels. Bitcoin rose 19.44% to $34,400 after hitting a session low of $28,800. Meanwhile, after testing $1,700 as support, Ethereum Price rose up to 20.29 % to $2,045, a considerably smaller gain than Solana.
Top 3 reasons why SOL Price bounced back faster
Pyth added LMAX Digital as a data provider
While SOL was recovering, the announcement that Pyth, a decentralized financial market data distribution network, has added LMAX Digital, an institutional exchange operator, as its data provider was made.
Pyth Network is based on Solana’s scalability-optimized public base-layer proof-of-stake blockchain system. Pyth, backed by Solana, will obtain foreign exchange and cryptocurrency trade data on its blockchain as a result of its agreement with LMAX.
At the end of last week, Solana led a $3 million funding round for PARISIQ, a blockchain data monitoring platform. Having PARISIQ on board, according to the founder, will provide their projects fewer difficulties as they expand up their platform.
It was also rumored that Solana will fund another $450 million to construct an “Ethereum Killer”, which may have kept SOL’s uptrend momentum strong. Solana has also partnered with ROK Capital to launch a $20mm fund to expand in South Korea.
Triple Support Confluence
SOL’s current downtrend tested a triple-support confluence, providing daytraders psychological entry levels. Given its recent capacity to cap bearish moves, SOL found the first layer of price support. Second, the Solana token received additional bullish floors at $24.56, which have a history of maintaining the token’s upside bias, as well as the 200-day simple moving average.
The relative strength index (RSI) for the SOL/USD was also slightly over its oversold threshold of 30. Traders have traditionally seen a lower RSI reading as a signal to join the market.