How Solana price will react after Solend attempts to take over investor’s wallet – FXStreet
https://ift.tt/QjHOwNZ
Akash Girimath
FXStreet
Solana price breached a month-long declining trend line in a bullish move, but the recent developments could flip the narrative bearish for SOL.
Solend, a Solana-based lending and borrowing platform recently voted to take control of a whale’s account that was close to being liquidated. The said account borrowed $108 million USDC with 5.7 million SOL tokens as collateral.
Roughly 20% of the whale’s account would be liquidated if Solana price slides below $22.30. Often, liquidation involves selling tokens on exchanges, which would have a huge market impact.
However, Solend’s move is unprecedented in the DeFi ecosystem because it violates one of the main tenets of Web3 – decentralization. This caused many in the space to critize Solend’s decision.
Insanity, what a joke
Interestingly, a new proposal that aimed to overturn the previous one was started on Monday and received 99.8% of the votes in its favor.
Solana price has produced lower highs since May 15, which can be connected using a trend line. The June 14 swing low at $25.17 formed a base, just above the $24.52 support level. A surge in buying pressure here, pushed SOL to rally 36% in a week.
The run-up also breached the declining trend line and is currently hovering around $34.93. Any attempts at recovery will be neutralized by the $38.22 hurdle. Therefore, the likely direction for SOL would be to retrace and recuperate.
As a result, Solana price is likely to tag the declining trend line, but in a case with high selling pressure, investors can expect SOL to head toward the weekly support level at $24.52. If the sellers push through this support floor, things could turn ugly.
In such a case, Solana price could retest the $19 support level. Investors need to be cautious here as this development could trigger a liquidation of the whale’s wallet. This fallout could further drive SOL prices lower.
SOL/USDT 1-day chart
On the other hand, if Solana price produces a daily candlestick close above $38.22, it will temporarily keep the bears at bay. This move will allow SOL bulls to climb up by 23% to encounter the weekly resistance barrier at $47.43.
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.
ApeCoin price could start moving violently upwards. Traders should keep their eyes on the digital asset to partake in the move. ApeCoin price could be an early mover within the crypto market, as the technicals point to more uptrend in the short term.
Terra’s LUNA price is still in an unfortunate situation. Buying early may not be the best idea, but the technicals should continue under surveillance for potential entries. The price continues to struggle as the bears have forced a rejection at the $2.00 level.
Ripple’s XRP price is still sideways and submerged since the June 11 sell-off occurred. Ripple has opened an office in Toronto, vowing to hire 100 new software engineers and developers. Invalidation of the downtrend is a breach above $0.38.
Shiba Inu price may have bottomed but this can only be confirmed if the current rally persists. Traders should be aware of several factors. Shiba Inu price has suddenly changed as the bulls have printed a significantly large bullish engulfing candle on the daily chart.
Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Tech
via Inferse.com https://www.inferse.com
June 24, 2022 at 01:46AM