Important crypto news during these difficult days for Solana (SOL) and Monero (XMR). How are these two reacting to the delicate situation of the Silicon Valley Bank collapse?
It is worth noting that Solana is a public blockchain platform. It is open-source and decentralized, and achieves consensus using a proof-of-stake algorithm along with a novel algorithm called proof-of-history.
Monero, on the other hand, is a cryptocurrency created in April 2014 that focuses on privacy, decentralization, scalability, and fungibility.
Latest crypto updates for Solana (SOL)
Over the past two days, Solana (SOL) appeared to reverse the bearish trajectory it had been on since late February.
Specifically, this was a trend across the cryptocurrency market following the short-term bullish sentiment behind Bitcoin in the early hours of Monday.
As such, was this the beginning of a bullish trend or was it a move into a pool of liquidity before a reversal? Monday’s ups and downs generally provide information about the direction of the coming week
Thus, traders can also incorporate this information before formulating a plan of action regarding Solana. Currently, SOL’s price is trading at $19.68 and has retested previous range lows as resistance.
This range was highlighted in orange, and Solana traded within it from mid-January until falling below it on 7 March. The range extended from $20.5 to $26.6.
Solana’s gains measured 28.6% when measured from the swing low at $16 that SOL recorded over the weekend. The RSI was also above 50 neutral and showed strong bullish momentum.
However, the OBV was unable to reach a higher high, which showed slightly dampened buying pressure over the last three days of gains.
Although trading volume has been high in the last H4 trading sessions, when Solana made these gains, the trend has not yet reversed.
From a technical point of view, the market structure was bullish as the recent high below $18.9 was broken.
However, the $20 area represented a confluence of resistance from the range lows and the bearish breakout in February. Therefore, short selling of the asset could be of interest to aggressive bears. To the south, the $18.5 and $16.6 may be used to take profits.
Focus on the price of Monero (XMR): the wedge pattern
The price of XMR gave its ongoing correction a specific direction. In fact, the coin’s price has returned several times from converging trend lines, indicating that market participants are strictly adhering to the so-called wedge pattern.
A wedge pattern shows a directional rally resonating between two converging trend lines. If the price of the asset crosses one of the trend lines, the price action may further extend the post-breakout rally.
Therefore, here is how the XMR price might react to the completion of this pattern. The price of the Monero coin began its ongoing correction phase when it fell from its peak of $187.5 on 30 January.
The ensuing five-week fall caused the altcoin to plummet 28.5%, reaching the combined support of $134.52 and the support trendline of a descending wedge pattern.
In theory, the most common outcome of this pattern is to encourage a bullish reversal when price has reached the support trendline, which eventually provides a bullish breakout from the resistance trendline to resume the bullish recovery.
Therefore, today the Monero coin rebounded from a lower trend line with a bullish candle showing a 4% jump. This bullish reversal is expected to increase the coin’s price by another 5% to reach the overhead trendline.
Until this pattern is intact, the XMR price will prolong its current correction phase. Conversely, a bullish break from the pattern’s resistance trend line will signal an initial sign of trend reversal and reignite the recovery phase.
Solana Whale deposits $10 million on Coinbase
Recent data show that a Solana whale has deposited $10.2 million in SOL in the cryptocurrency exchange Coinbase, as the price of the asset rose 16% in today’s day.
According to data from cryptocurrency transaction monitoring service Whale Alert, a large transfer of SOL was detected on the blockchain during the past day. The transaction involved the movement of a total of 537,352 tokens, worth about $10.2 million, when the transfer was executed.
Since then, the price of cryptocurrency has seen a further increase, so the same stack of coins is worth more than $11.1 million at the latest exchange rate. As the amount involved here is large, the sender behind this transfer was likely a single whale or an entity of larger investors.
Consequencies of crypto whales movment on Solana
Sometimes, the movements of these huge holders can cause large effects on the market because of the vastness of the currencies involved. For this reason, whale transactions can be something to pay attention to.
In which way any such transfer would affect the price depends on the exact intent the whale had in mind while making it. In any case, the sending address in the case of this Solana whale transaction was an unknown wallet.
Such addresses are not connected to any known centralized platform, which means that they are likely to be personal off-site wallets. On the other hand, the receiver was attached to a Coinbase wallet.
Transactions like these, in which coins move from personal wallets to exchange platforms, are called “inflow exchanges.” One of the main reasons an investor may deposit his or her coins on a platform like Coinbase is for purposes related to selling.
For this reason, inflows can hurt the price. Since, in the present case, the Solana exchange inflow was quite large, it could cause a visible bearish effect on the value of the asset.
This of course is only assuming that the whale intends to sell the coins with such a move. Considering that the move occurred when Solana was enjoying a rapid bullish trend, there seems to be a good chance that the whale intends to cash in on this profitable opportunity with the deposit.