Like this Solana [SOL] Collaborations led to >$1bn redemption – what next

After a few days of miserable performance, Solana [SOL] rode his horse back to a $1 billion trade volume. Considered one of the fastest growing ecosystems in crypto, SOL lost control of $1 billion in volume when the price fell from $33.44 to $30.62 on Sept. 7.

On the same day, Solana confirmed its partnerships with two separate decentralized finance (DeFi) platforms. According to the world’s largest DApp store, DappRadar, Soldex and AlfProtocol were the platforms that have partnered with Solana.

🔥 @Solana is witnessing a huge partnership in its DeFi space as @Alfprotocol and @Soldexai form a joint venture. This means Solana DeFi users have more potential to grow their DeFi portfolio.

➡️ Check it out: https://t.co/2E5dviAvTI #Sponsored

— DappRadar (@DappRadar) September 8, 2022

On the same page

While both protocols already existed on Solana, the recent collaboration aimed to improve the DeFi experience of Solana loyalists. Soldex could help users access easy-to-use Decentralized Exchanges (DEXes). AlfProtocol, on the other hand, could help streamline yield farming systems across the Solana network.

DappRadar too written down that the partnership could help increase Solana’s user base. Along with the increase in trading volume, the price of SOL also increased. At press time, the cryptocurrency was trading at 35.10 – above the price it was before the drop.

So has the goal of increasing user numbers had an impact?

Not taboo

Corresponding Holy, Solana’s social dominance had increased after the price increase. The metric, which was up just 2.48% on Sept. 8, was up 5.26% at press time.

However, it was not a similar circumstance in the activities of whales. The on-chain data platform showed that the percentage of whale supply that exceeded $5 million has declined. While it was 43.14% on September 8, it had fallen to 42.99%.

Source: Santiment

From the four hour charts, SOL appeared to have cleared the falling support from September 1st. In addition, it had also broken out of a recent resistance with clear signs of upward movement. The Relative Strength Index (RSI) status, at above 70, also reflected intense buying activity. This increase may have contributed to the aforementioned volume.

However, a sustained increase in RSI momentum may eventually lead to a reversal. At that point it would represent an overbought level and a reversal could propel the price action higher or mark the start of a chest pattern.

Source: TradingView

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