PATNA (CoinChapter.com) — Solana Foundation’s head of strategy and communications, Austin Federa, hinted at major developments coming to Solana. The announcement caused SOL price to go parabolic and jump 32.57% on Jan 14, registering its highest single-day gain since Jan 8, 2021.
In an interview with Bloomberg on Jan 13, Federa noted that the Solana Foundation would focus on creating opportunities for builders in 2023. The Solana strategy head admitted that the latter half of 2022 had been bad for the crypto sector, with the FTX contagion especially hurting Solana.
Federa highlighted that Bonk, the meme token that helped drive SOL prices upward in Jan, highlights how the Solana community still believed in the project. “Yes, at some level, it [BONK] is a meme. It doesn’t actually, specifically, do something, but it is a token of community,” Federa stated.
Moreover, the Solana executive shared Bonk highlights the community is “having fun with blockchains again,” suggesting that confidence in cryptocurrencies is returning.
That code has been taken over by the community and relaunched as something called Open Book. So that’s kind of what I was talking about the community healing parts of the ecosystem that Sam and FTX were involved in.
Austin Federa told Bloomberg
However, Federa assured the Solana community that the platform had taken control of all projects linked to FTX. In addition, the brainchild of SBF and Solana network, Serum, is now in the hands of the community.
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Furthermore, Solana plans to incorporate a new validator client, hoping to mitigate network outages in 2023. The blockchain suffered several outages and instability issues in 2022.
Additionally, Federa shared that Solana plans to introduce changes that would help Web 2-like products and services on the blockchain.
Overbought RSI Weighing In SOL Price Action
SOL price spiked more than 155% to form a multi-month high of $24.7 on Jan 14. However, the Solana token’s price then lost momentum, with SOL price crabbing since Jan 15. On Jan 17, bears had the upper hand on SOL price action before bulls took control.
As a result, SOL price jumped nearly 5% to form a high near $23.92. Moreover, the upward-sloping EMA trendlines underscore the bullishness of Solana price action. If the uptrend continues, SOL price will likely needle above immediate resistance near $24.7.
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A break and hold above immediate resistance might help Solana price rise to target resistance near $29.4 before downside corrections pare gains.
However, the bullish rally has forced Solana’s relative strength index into overbought regions. Traders often consider overbought RSI levels an indicator of impending bearish trend reversal, prompting sell-offs.
Despite the recent lack of steam, SOL’s RSI remains overbought, clocking at 80.61 on the daily timeframe. If the sell-off continues, Solana might fall to test support near $21.5. Moreover, failure of immediate support could result in SOL price dropping to its 100-day EMA (blue wave) support near $18.9.
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