Reddit co-founder bets big on Solana, while SOL shows conflicting technicals

solana sol, head and shoulders, seven seven six
image from medium.com

Key Takeaways:

  • Reddit co-founder AleSoxis Ohanian will fund Solana-based social platform building with $100 million.
  • SOL flashed conflicting formations, while holding a crucial support.

YEREVAN (CoinCHapter.com) – “Ethereum killer” Solana will receive $100 million in funding from Seven Seven Six, a venture capital firm focused on early blockchain startup investment. Alexis Ohanian, the venture company’s founder, and Reddit co-founder specified the funding target as the “next wave of social platforms, built on Solana.”

Mr. Ohanian pointed out that his firm has extensive expertise in “identifying and investing in early social and crypto trends.” It is noteworthy that some of the millionaire’s early investments include crypto exchange Coinbase, valued at $99.6 billion, and online platform Patreon, worth over $4 billion.

Fast forward to the Solana investment; the initial sum stood at $50 million. However, during the Breakpoint Conference in Lisbon, Portugal on Tuesday, Mr. Ohanian announced he was ready to double it.

Raj Gokal, the Chief Operating Officer of Solana Labs, commented on the popularity of centralized social media platforms like Facebook. He said that the blockchain-based alternative would stir up the sector and provide the users with new options.

Web3 turns users and creators into owners and stakeholders, a change that can’t come soon enough to social media.

said the COO.

Also read: Solana eyes run up towards $300 as SOL paints cup and handle setup.

Meanwhile, Solana’s TVL (total value locked) declined by 2% after hitting a record high of $15.2 billion on Nov 9. Its native token SOL also flashed conflicting patterns on the charts, hinting at a possible setback.

Solana's TVL corrected after a record high. Source: defillama.com
Solana’s TVL corrected after a record high. Source: defillama.com

SOL daily chart

In the previous Solana review, CoinChapter targeted SOL price at $300 in the upcoming sessions, based on a technical setup. The digital asset did break out of the pattern with a bullish bias but also flashed a possible bearish Head and Shoulders pattern forming.

Solana in a possible Head and Shoulder formation. Source: SOLUSD on TradingView.com
Solana in a possible Head and Shoulder formation. Source: SOLUSD on TradingView.com

In detail, the Head and Shoulders (H&S) consists of three consecutive tops that connect at the base with a mutual ‘Neckline.’ The middle top is the highest and constitutes the Head. SOL has already formed two tops. It currently holds support at $234. If the digital asset retests the support again, Solana could continue the climb.

However, if SOL declines below the said support line, it could fall into the H&S formation, giving Solana bears more gains.

Also read: Solana bulls rejected Head and Shoulder advances, as SOL gains 13%.

The upcoming sessions will decide SOL’s bias. Solana bulls could win, given the growing TVL and investors’ increasing confidence in the project. As for technical indicators, the support at $234 could signify the digital asset’s direction.

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