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Simon Chandler
Author
Simon Chandler
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The price of Solana has recovered by 1.5% today, with its rise to $171 coming as Coinbase begins offering CFTC-regulated SOL futures to traders.
SOL remains down by 13% in a week and by 35% in a month, but Coinbase’s news has lifted it from a 24-hour low of $161, which represented a potentially dangerous resistance level for the coin.
And with Solana still up by 53% in a year, it maintains the longer term momentum that, in conjunction with an expansion in futures trading, could give it a very positive long-term price prediction.
Coinbase Moves Big on Solana – Could Futures Trading Lead to a New ATH for SOL?
Announcing the news in a blog post yesterday, Coinbase emphasized that it’s aiming its CFTC-regulated Solana futures product at institutional investors, as well as more experienced and professional traders.
It wrote that Solana and Hedera (HBAR) – which is also getting its own futures product – offer “unique advantages that make them attractive to both institutional and retail traders.”
This is significant because if institutions do go for Coinbase’s SOL futures in a big way, it could have a substantial impact on Solana and its price.
This possibility helps to explain why Solana has outperformed the market as a whole today, with average prices actually down by 1% in the past 24 hours.
And the lift goes some of the way to correcting the negativity SOL has faced as it approaches March 1, when the FTX estate will unlock around $2.2 billion in Solana.
Looking at its chart today, we see that it has begun to rise again after bottoming out over the past couple of days.
Most notably, its 30-period average (orange) has flattened, and now it looks like it will begin an ascent toward the 200-period average (blue), bringing SOL’s price with it.
Much the same applies to Solana’s relative strength index (purple), which after struggling to get out of the oversold 20-30 range at the start of the week has now risen back above 50.
This signals rising momentum, with buyers returning to the coin after it became so cheap.
Indeed, we see whales beginning to accumulate the coin again, with one newly created wallet withdrawing $14.8 million in Solana from Binance and staking it over the past two days.
Based on this renewed momentum, we can expect Solana to return to $200 by the end of Q1, before reaching $275 or even $300 by H2.
Maximize Gains with Diversified High-Potential Altcoins
Solana remains one of the strongest major tokens in the market, but its recent declines and the prospect of a big unlock may turn off some investors.
Instead, they may prefer looking to newer tokens for market-beating rallies, with several presale coins gaining plenty of strength at the moment.
One of these is Solaxy (SOLX), a new layer-two network for Solana that raised a very impressive $22.2 million in its ongoing sale.
As Solana’s first fully fledged L2, it will help traders avoid failed transactions, network congestion, and outages, which are still a recurring problem for Solana, even after significant upgrades.
It will also provide instant bridging between Solana and several other chains, something which could help it to become a major hub for meme coins over time.
There isn’t much time left before SOLX presale ends, but latecomers can still join by going to the official Solaxy website.
SOLX is selling at $0.00164, but this price will rise every few days until the ICO ends, so traders should act quickly.
