Classic buy signal triggered on Solana chart as Huobi announces SOL staking feature

Key Solana takeaways:

  • SOL/USDT pair dropped 16% in the recent selloff
  • SOL price rally is organic, says FTX boss Sam Bankman-Fried
  • Huobi announced SOL staking for users
  • The token sparked a buy signal and may surge higher to log a new all-time high near $270

JAIPUR (Coinchapter.com) – Solana’s native token SOL looks to resume its uptrend on the back of a technically bullish setup.

The SOL/USDT pair incurred almost 20% losses (dropping from $216 to $180) in a recent bout of profit-taking. But bullish comments from the FTX founder, Huobi’s latest SOL staking offering for users, and a positive technical setup point to SOL/USDT’s upwards price surge towards $270.

Related: Solana (SOL) broke above $200, but JP Morgan is not convinced.

FTX Boss Feels Solana Rally Is Organic

Sam Bankman-Fried, the founder and CEO of the crypto derivatives exchange FTX, recently stated that the Solana blockchain underpinning token’s recent rally was organic and not hype-driven.

As per reports, the FTX boss observed that Solana remained an underdog on the marketing and buzz generation front. But the same inadvertently worked to boost SOL prices.

Related: FTX announces Solana-enabled marketplace; SOL soars towards $200

He asserted that the absence of mechanized attention-gathering efforts meant that the SOL/USDT pair’s upside run is based on a strong foundation.

“It is much more likely to be decently organic and that’s always been Solana’s calling card.”

noted Bankman-Fried in a webinar held on Thrusday

Huobi Announces SOL Staking

Cryptocurrency exchange Huobi announced the SOL staking option for users. As per the announcement, Huobi Pool’s Solana staking feature will let investors earn rewards with annual recurring revenues (ARR) of up to 5%.

Staking is a well-known decentralized finance (DeFi) practice where protocols/exchanges simulate traditional banking systems to let users earn interest/rewards/income on their idle crypto funds.

Buy Signal

The 4-hour chart of the SOL/USDT pair emanated bullish vibes as the pair formed a classic bullish signal that points to an impending rally. Symmetrical triangle formation with a $75 vertical base length indicated the pair’s possibility to rally upwards from $195, the entry point for sellers in the previous red candle.

Solana's SOL formed a bullish technical setup
Solana’s SOL formed a bullish technical setup. Source: SOLUSDT on TradingView.com

The selling pressure on SOL looks to wane. And if the said technical scenario plays out, the token would cost around $270 apiece. Analysts have also reiterated the SOL/USDT pair’s bullish sentiment, one of them calling for an almost similar price target.

“#Solana $266 is my next target not FA.”

said Twitter-based analyst Coinskid

Declining relative strength index (RSI) readings (from overbought levels) also support the upward trend. RSI is currently trending at 51. A dip below 50 would bring the bulls back in action, as RSI numbers below 50 always lean bullish and above 50 bearish.

However, if sellers soldier on, SOL/USDT spot rates could decline to $158.58 (coincides with the 50-day moving average wave). A bullish resurgence would eventually push prices up, but the symmetric triangle setup would stand invalidated.

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