Key Takeaways:
- Visa has partnered with Solana to facilitate USDC transactions.
- Though SOL price initially jumped on the news before paring gains.
- The Solana token is moving inside a bullish pattern.
NEW DELHI (CoinChapter.com) — Solana is now partners with Visa, the world’s largest financial settlement firm.
In its statement, Visa said the partnership would help the global payments leader enhance cross-border transfers. Visa would leverage the Solana blockchain and partner with merchant acquirers Worldpay and Nuvei.
The move would mean merchants affiliated with Worldpay and Nuvei could receive USDC stablecoin payments directly, instead of fiat currency, when users pay using their Visa cards.
Visa stated that the platform sought high-performance blockchains to handle stablecoin transactions with “higher speed and lower costs.”
By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa’s treasury
said Cuy Sheffield, Head of Crypto at Visa.
The payments giant chose Solana for its high transaction speeds and low fees. Moreover, the partnership would make Visa one of the first major payment firms to utilize the Solana blockchain directly “for live settlement payments between its clients.”
SOL Price Moving Inside A Bullish Setup
Meanwhile, SOL price is moving inside a bullish technical setup called the “Ascending Triangle.“
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine if a breakout is strong.
Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the toke’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, the SOL price could, theoretically, rally 290% to reach $77.2, erasing all its losses since May 2022.
The Visa partnership could act as a bullish cue for the token. After Visa partnered with Crypto.com to promote NFTs during the FIFA World Cup 2022, CRO, Crypto.com’s native token, saw its price spike by nearly 20% between Nov 2 and Nov 7.
Similarly, Visa’s partnership with crypto wallet Wirex (Feb. 2023) helped the platform’s native token, WXT, price rally nearly 11% between Feb 13’s low and Feb 18’s high levels.
However, when the decommissioned crypto exchange FTX partnered with Visa to offer debit cards in Oct. 2022, FTT price dropped nearly 11% between Oct 7 and Oct 11 high and low levels.
SOL Price Drops After Initial Spike Following Visa Partnership
SOL bulls might be hoping for a positive reaction from the token following the platform’s partnership with Visa, similar to the reaction of CRO and WXT tokens.
The Solana token price spiked over 8% on Sept. 5 to reach a daily high near $20.6. However, the bearish pressure against the token resulted in SOL prices paring some gains. The downtrend continued on Sept 6, with the Solana token price dropping over 4% to a daily low near $19.34.
If the SOL price starts rallying, the token might move above the 20-day EMA (red wave) dynamic resistance before reaching the 100-day EMA (blue wave) and 50-day EMA (purple wave) resistance confluence near $21.6.
Breaking and consolidating above the immediate resistance might help SOL price target the resistance near $23.62 before corrections pare gains.
On the other hand, a continued downtrend might force the Solana token to drop to the support level near $18.8, which SOL price has previously tested multiple times between March and June this year.
Failure of the immediate support level might result in SOL price testing the support near $17 before recovering.
The RSI for SOL remained neutral, clocking a score of 39.55 on the daily charts.
