Solana Price Poised for Rally as Galaxy Digital Stakes 40 Million in SOL Tokens
1min read Solana's price is anticipated to experience a significant rally as institutional staking activities increase. Galaxy Digital, a prominent crypto investment firm, recently staked $40 million worth of SOL tokens. This move is expected to alleviate the sell-side pressure that has been weighing on Solana, potentially paving the way for a price recovery.
Galaxy Digital's staking activity involved withdrawing 282,000 SOL tokens from various exchanges, including coinbase and Binance, and subsequently staking 274,000 tokens valued at approximately $39 million. This action indicates that the firm has no immediate plans to sell its SOL holdings, which could stabilize the market and reduce selling pressure.
Despite recent declines in staking activities, as traders and institutions unstaked SOL and deposited their tokens on exchanges, the latest surge in staking could absorb the selling pressure. This could lead to a recovery in Solana's price, which has been under bearish trends due to weak sentiment in the broader crypto market.
Analysts are optimistic about Solana's price prospects. Ali Charts noted that SOL has been consolidating within a right-angled triangle pattern, suggesting a significant price move ahead. If Solana defends support at the lower trendline and rallies to breach resistance at the upper trendline, it could ignite a parabolic price rally. However, this upswing would require additional buyer support.
Another analyst, Satoshi Flipper, shared a bullish outlook, stating that SOL is testing resistance at the upper trendline of a descending parallel channel. If SOL breaches this resistance, it could trigger a rise in demand, potentially pushing the price past $200 to its all-time highs. This optimistic outlook is supported by the recent institutional interest, as Galaxy Digital's staking activity indicates a renewed confidence in Solana's potential.
