The native cryptocurrency of the Solana network, SOL, has been pushing up in the market since it was announced that it would be merged with Helium. Helium developers came up with the idea of HIP 70 which has the goal of transferring the whole supply chain on Helium to Solana.
Helium to Get a New Home
Helium core developers are saying that the main reason for deciding to merge and move over to Solana is to be able to improve Helium’s stability, speed, and scalability.
Solana published a piece on Medium on the 31st of August where it proposed for Helium to migrate its ecosystem from its current L1 system to Solana’s fast and scalable network. The Medium post said the movement would permit Helium to have better composability, a fast user experience, and higher uptime while it maintains its security, as well as the low cost of running the network.
Recent reports are showing that SOL’s sales volume has gone up by as much as 250%. The volume moved from a low level of $675,184 to Wednesday’s record of $1,685,409.
It has been observed over time that whenever there is a rise in transaction volumes, it is followed up by a rise in prices. SOL’s price jumped by 11.52% under 12 hours on the 2nd of September. The latest round of advances landed the price at $38.06.
But the bullish move saw a sharp correction on Wednesday. One of the realities of a price increase is the likelihood of a sell-off as some investors would want to make a profit in that period.
The sell-off began to happen just after the asset’s price reached its peak at $38.32. The correction under review happened a day after SOL experienced the bullish movement.
SOL Slides as Expectation Heightens
Stoch relative strength index and CCI values showed that SOL has entered the overbought zone following the market’s increase. It then triggered a selling signal.
The correction and price decline are equally increasing the token’s attractiveness in the short term. Reports from recent activities in the market have it that the present set of traders is mostly short-term sellers. And most crypto exchanges are now populated by short-term bets.
The crypto market is trying to fix the SOL price decline by testing the 100% Fib retracement area, and the 50-period daily moving average serving as the price support level.
The timeframe to carry out the merger of Solana and Helium is still at the voting level. The current hype around the merger might then help the price rise higher or simply push it to lower depths.
The result of the vote will reveal the inherent ideas of investors in the Solana network. The result might be released to the public on the 18th of September.