Solana price could be poised for a parabolic rally amid a rise in staking activities by institutions. Recently, Galaxy Digital staked $40M worth of SOL tokens, which could ease the sell-side pressure that is currently weighing on Solana. As staking activities rise, can Solana price recover from bearish trends and rally?
At press time, Solana price trades at $136 after a 4.4% decline in 24 hours.
Solana Price in Focus as Galaxy Digital Stakes $40M SOL
Solana price has been facing high selling pressure from the March FTX unlocks. However, a sudden surge in staking activity could turn the tide and push the SOL price higher.
According to LookonChain, crypto investment firm Galaxy Digital withdrew 282,000 SOL from Coinbase, Binance, and other exchanges. It later staked 274,000 tokens valued at approximately $39M. This staking activity shows the firm is not willing to sell SOL in the near term.
Data from Dune Analytics shows a slight drop in Solana staking activities. As traders and institutions unstaked SOL and deposited their tokens to exchanges, it contributed to high selling activity. However, if staking activity is increasing again, it could absorb the selling pressure that is currently pushing Solana price down and pave the way for a recovery.
Is Solana Poised for a Parabolic Rally?
SOL price could be poised for a parabolic rally, with analysts sharing a bullish Solana price prediction. Per analyst Ali Charts, SOL price has been moving in consolidation within a right-angled triangle pattern, which hints at a significant price move ahead.
If Solana defends support at the lower trendline of this pattern and rallies to breach resistance at the upper trendline, it could ignite a parabolic price rally. However, more buyer support is needed to support such an upswing.
Another analyst, Satoshi Flipper, also shared a bullish outlook on SOL price, saying that it was testing resistance at the upper trendline of a descending parallel channel. SOL has been fluctuating within this channel for more than a month as bearish trends prevailed.
If SOL breaches resistance at the upper trendline, it could indicate a buy signal that will trigger a rise in demand. This could push Solana price past $200 to its all-time highs.
Solana price has been under stiff bearish pressure due to weak sentiment in the broader crypto market. However, institutional interest is rising again after Galaxy Digital staked $39M worth of SOL. If staking activity continues, SOL may record a swift recovery.
The post Solana Price Eyes Parabolic Rally as Galaxy Digital Stakes $40M SOL appeared first on CoinGape.
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