Solana Price Surges as Ethena Labs Proposes SOL as Backing Asset for USDe Stablecoin

The Solana price has recovered admirably after bouncing off support at $134. It is currently up 4%, with SOL/USD trading at $152. The growing interest in the token has seen the trading volume spike by more than 80% to $2 billion, while the market is up 4% to $71 billion. SOL is now up 4% in a week, 11% in a month, and 595% in a year, gaining a spot among the fastest-growing cryptocurrencies.

The tremendous performance has boosted investors’ confidence, with some even speculating that the token may target the $170 mark if the market widens. 

$SOL plays well on the bullish W pattern!

🔸 With the current bullish scenario #Solana eyeing, at $160 with strong key supports between the fib levels of 38.2 and 50.00 📈

🔸 If the market widens, #SOL may get to $170. pic.twitter.com/pcA9HoSUh5

— Coin Edition: Your Crypto News Edge ️ (@CoinEdition) October 14, 2024

Meanwhile, Ethena Labs has initiated a proposal to add SOL as a backing asset for USDe. This mechanism is basically the same as the hedging mechanism currently used by Ethena for BTC and ETH perpetual futures.

The Ethena community has initiated a proposal to add SOL as a backing asset for USDe, with a mechanism that is basically the same as the hedging mechanism currently used by Ethena for BTC and ETH perpetual futures. The proposal also includes BNSOL (Binance Liquid Staked SOL) and…

— Wu Blockchain (@WuBlockchain) October 14, 2024

Solana Statistical Data

Based on CoinmarketCap data: 

• SOL price now – $152
• Trading volume (24h) – $2 billion
• Market cap – $71.61 billion
• Total supply –586.25 million
• Circulating supply – 469.54 million
• SOL ranking – #5

Solana Price Aims for a Continued Uptrend

On October 1, the Solana market was overwhelmed with selling pressure, causing SOL to plummet to around the $134 mark. This support allowed bulls to regroup, build momentum, and push for another breakout before facing rejection at the $151 mark. This caused the Solana price to dwindle again, forming a W or double bottom pattern.

The Solana Bulls are back in control after setting camp at the $152. The Solana price’s 13% rally followed a break above the $143 and $144 resistance zones—a level reinforced by the 50-day and 200-day Simple Moving Averages (SMAs). This leaves SOL in a resistance-free zone, as they target the $157 mark. 

However, traders are advised to exercise caution as the Relative Strength Index (RSI) pushes into the overbought region. A retracement will likely follow, allowing the SOL token to sweep through more liquidity as already sidelined investors rush to buy lower-priced SOL tokens. Currently, the RSI sits at 72.54, tilting the odds in favor of the bulls. 

Traders are at liberty to hold their long positions in SOL intact, bolstered by the bullish outlook from the Moving Average Convergence Divergence (MACD) indicator. A buy signal validated the rally with the blue MACD line stepping above the signal line in orange. The momentum indicator has also been trending upwards into the positive region – above the mean line at 0.00. This means that traders are inclined to buy SOL unless the MACD changes.

Solana Price Forecast: Is $160 the Next Reach?

Most technical indicators have flipped bullishly to support the uptrend, including a call to investors to buy SOL from the Moving Average Convergence Divergence (MACD). Increased buying pressure will see the price rise, targeting the next hurdle at $157 or $160 in the short term. 

However, caution is advised, considering the Relative Strength Index (RSI) is currently in the overbought region. If SOL loses momentum at this level, it would be forced to retrace in search of fresh liquidity before resuming the uptrend.

In that case, traders should keep certain levels in mind, as they will likely serve as support areas to absorb the selling pressure. Support at $145 may come in handy, not to mention the coinciding 50-day SMA at $144 and 200-day SMA at $143. Price movement below $143 could trigger a massive sell-off, as SOL holders will likely start panic selling.