The crypto exchange has listed tokens from two major projects relying on the Solana network for the first time. Solana’s SOL token jumped 17 percent in the past 24 hours to the $100+ level after Coinbase listed two more tokens from the Solana ecosystem. The crypto exchange announced on Monday that it would list ORCA and FIDA, the tokens of the Solana Orca and Bonfida-based decentralized exchanges, respectively, as indicated. The move marked the first time non-Ethereum assets were listed on Coinbase. It previously only listed tokens built on the Ethereum blockchain or blockchain-native tokens, such as Avalanche (AVAX) and Solana.
SOL prices jumped to more than $106 during Asian morning hours Tuesday, up from $90 on Monday morning. SOL was trading above $175 in early January, but fell to $82 last week amid a broader market decline. Prices have bounced off the $88-$90 support level, which was a major area for buyers last week. SOL had previously failed to break the $100 resistance level in January.
Relative Strength Index (RSI) readings, however, have reached overbought levels above 70, indicating that a brief correction may soon occur. The RSI is a price chart indicator that determines the magnitude of price changes over a period of time.
Another catalyst supporting the price movement was an investment announcement by Phantom, Solana’s most widely used and well-known blockchain portfolio. On Monday, Phantom closed a $109 million funding round led by crypto investment firm Paradigm and launched its iOS app, indicating future growth for the entire Solana ecosystem.
Meanwhile, ORCA continued its run from Monday. Over the past 24 hours, ORCA prices jumped 36% to over $4 during Asian trading hours, despite a brief sell-off from the $3.50 level on Monday. FIDA investors did not see any gains, however, as prices rose just 0.7 percent over the past 24 hours, according to data from analysis tool CoinGecko.
FIDA was trading at the $2 level prior to its listing on Coinbase and reached over $2.77 during Asian trading hours before dropping over 50 cents at the time of writing.
Solana’s price is getting a bullish bounce, but the bears are still under control
Solana price has a series of technical factors that could end the recent rally. A collection of price levels in the same value area is acting as resistance. The Optex Bands and Composite Index oscillators are warning of a false move higher in conjunction with these price levels. If Solana wants to launch another bullish run and return to new all-time highs, it must first close above the largest collection of resistance levels currently near its price. Between $111 and $120 are the 38.2% Fibonacci retracement, the 100% Fibonacci expansion, the weekly Kijun-Sen and the bottom of the bullish flag (represented by a linear regression channel).
The existence of a hidden bearish divergence between the candlestick chart and the composite index adds further pressure to price resistance. The Solana price chart shows lower highs and closes, while the composite index shows higher highs. The hidden bearish divergence is only valid if an instrument is already in a downtrend. It warns that the current move is likely to reverse and resume the old downtrend. In addition, the slope of the Optex Bands oscillator is extreme and will reach overbought levels very soon.