Solana’s (SOL) recent price action has demonstrated a classic technical breakout pattern. The popular cryptocurrency climbed above the $213 threshold after rising by over 6% in the past 24 hours and is testing resistance levels that have held since February of this year.
This breakthrough potentially points to the end of a months-long consolidation phase.
According to Santiment’s latest findings, the accompanying retail sentiment data reveals an extraordinary bullish tilt. In fact, a positive commentary was found to be dominating negative opinions at a 5.8:1 ratio. This is the strongest bullish sentiment reading in nearly three months.
While such technical breakouts often lead to steady upward momentum, the extreme nature of retail optimism in SOL, however, needs careful monitoring, as euphoric sentiment levels can sometimes precede market corrections.
Experts from B2BINPAY had recently stated that SOL’s jump back above $200 was “more than just a speculative pop,” which aligned with strong on-chain metrics. Blockchain throughput also witnessed significant growth since last month, alongside increased DeFi total value locked as well as expanding NFT activity and GameFi adoption.
Momentum is not just limited to charts and on-chain metrics. For instance, Sharps Technology announced a $400 million treasury strategy centered on Solana’s native token. The medical device maker signed a letter of intent with the Solana Foundation to acquire $50 million worth of SOL tokens through a private investment in public equity (PIPE) deal. The purchase will be made at a 15% discount to SOL’s 30-day average price.
Additionally, Galaxy Digital, Multicoin Capital, and Jump Crypto are raising $1 billion to create a dedicated SOL treasury. Pantera Capital is also betting big on Solana. Reports claim that the crypto hedge fund is aiming to raise $1.25 billion by converting a Nasdaq-listed firm into “Solana Co.” The plan includes $500 million upfront and $750 million via warrants, which could potentially create the world’s largest SOL treasury, for now.