The upcoming SOL auction, a departure from previous fixed-price sales, is a strategic shift signaling potential changes in market dynamics.
Will the crypto community be able to buy Solana?
Previously, 25 to 30 million SOL tokens were sold, worth nearly $1.9 billion. These tokens were valued at $64 each, a steep 60% discount to the market price at the time. However, this reduction also came with a trade-off: buyers had to lock in their SOL tokens for four years.
“You’re basically trading time for a discount – you have to lock up your capital for four years, but you pay much less for the tokens,” said Caladan’s Eva Weng.
The decision to opt for an auction this time could encourage competition and affect the market price of Solana. Mike Cagney, CEO of Figure Markets, confirmed is holding the auction, but the final details still remain confidential.
To learn more: How to buy Solana (SOL)? Everything you need to know
Cagney’s Figure Markets is also proposing a Special Purpose Vehicle (SPV) to allow the crypto community to participate in the auction. This mechanism is designed to attract both non-US and accredited US investors. It allows them to engage in community consensus in deciding bid prices and managing subsequent investments.
The auction format could increase bidding interest and could affect Solana’s pricing trends.
Currently, the SOL trajectory is being restored. After reaching a high of $210 on March 18, the price of the altcoin fell significantly by more than 44%, reaching a low of around $116 on April 13. However, it has since bounced back and is trading almost 30% higher from that low.
This recovery is proving crucial as Solana is testing major resistance levels near $156. This level is important because it corresponds to a key Fibonacci retracement point.
If Solana manages to hold the position above $156, it could see a 22% rally to around $185, taking it to the 0.786 Fibonacci level. On the contrary, if it fails to break this barrier, the price could find support at $145.56.
“The $148 Solana is incredibly undervalued,” he said Dan Borovik from Rollbit.
Moral of the story: Solana never said her last word.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult with an expert before making any financial decision.