Solana try to rebound after Vitalik Buterin comments 📈

16:20 30 December 2022

Vitalik Buterin, co-creator of second, largest cryptocurrency Ethereum posted on Twitter yesterday stating that the potential of the Solana cryptocurrency blockchain remains significant, and that rogue holders of SOL tokens have likely sold off all of them, which could help unlock its future potential. Buterin helped stave off a huge sell-off, an entry that took place when Solana prices were already diving into the neighborhood of $7.9, recording a nearly 96% drop from historic highs. Solana has recently come under pressure as the bankrupt FTX-linked Alameda Research fund held significant SOL reserves and sold off assets, in addition, key popular projects related to NFT technology, among others, began to migrate from the network contributing to a sharp drop in TVL and pessimistic sentiment around the project.

Looking at the chart from the technical side, we see that the sell-off was halted at levels below $8 per share, and since then the cryptocurrency has managed to rebound by nearly 15%. The price has risen above the 50 (blue) and 100 session average (black), with key resistance likely to be encountered at the level of the 200 session average (red), which runs around $10. A potential move above it could herald a further trend reversal. As long as the bulls do not have enough strength to overcome the key psychological resistance at the $10 level the base short-term scenario remains bearish.Source: xStation5

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