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SOL Price Surges 8% as PayPal Brings $400M PYSUD to Solana Blockchain.

By:
Ibrahim Ajibade
Published: Jun 17, 2024, 08:10 GMT+00:00

Key Points:

  • Solana (SOL) price surged 8%, briefly crossing the $150 mark on June 17.
  • Global payments giant PayPal announced the integration of its PYUSD stablecoin into the Solana blockchain on June 15, 2024
  • Following the announcement, LONG positions in the Solana derivatives markets have exceeded the SHORT contracts.
Solana (SOL) price forecast

In this article:

Solana price surged 8%, briefly crossing the $151 mark on June 17, following the integration of PayPal’ PYSUSD stablecoin into the SOL DeFi ecosystem, here’s what to expect in the week ahead.

PayPal Partnership Sends Solana into Weekend Rally

PayPal’s stablecoin, PYUSD, was integrated into the Solana (SOL) and Injective (INJ) blockchain in late May 2024. This integration aims to leverage Solana’s high-speed and low-cost transaction capabilities, enhancing the usability of PYUSD for everyday transactions and expanding its reach within the cryptocurrency ecosystem​.

At the time of writing the PYSUSD stablecoin has a global market capitalization of $400 million, a far cry from industry behemoths like Tether (USDT) and Circle’s USDC with a combined valuation $200 billion.

PayPal famously launched PYUSD in August 2023. The decision to launch on Solana and Injective is part of a broader strategy to increase the adoption of PYUSD by making it available on more efficient and scalable blockchains.

While PayPal’s partnership with Solana was initially announced by Bloomberg on May 29, it did not have a pronounced instance impact on market activity.

This was largely due to more prevalent bearish headwinds from Ethereum ETF approval impact on rival Layer-1 networks as well a negative swings in latest US macro economic indices released in the first half of June.

Solana Price Action | June 2024 | TradingView
Solana Price Action | June 2024 | TradingView

But on Friday June 14, SOL began to gain significant traction as bullish investors began to gain foothold in the markets.  SOL entered a mild bullish reversal over the weekend, reversing a negative trend of nearly 25 days in decline, dating back to when Bloomberg analysts tease the ETH ETF approval news on May 21.

After dipping to a 30-day low of $139 on Friday, June 14, Solana price entered a 8.52% rebound, briefly reclaiming the $150 territory at the weekend.

Bulls Gain Foothold with $100 million LONG Positions

While Solana price has retraced toward the $145 support after another bearish wave blew across the crypto markets in the early hours of Monday June 17,  majority of speculative traders are pining for SOL bullish performance in the week ahead.

Coinglass’ Liquidation Map chart shows a real-time aggregate value of all active LONG positions listed for a particular crypto assets in comparison to active SHORT contracts. Essentially, this provides real-time insights into dominant short-term sentiment among Solana traders.

Solana LONG contracts vs. SHORT Contracts | June 17, 2024 | Coinglass
Solana LONG contracts vs. SHORT Contracts | June 17, 2024 | Coinglass

Solana bulls have mounted $108.37 million worth of leverage LONG positions around 20% boundaries of the current prices. Meanwhile the current SHORT positions are worth just above $82 million.

With LONG positions exceeding the active SHORTs by over $26 million, the bull traders are evidently in control of the Solana short-term market momentum.

Solana Price Forecast: $150 Resistance Looming Large

Solana price surged 8% over the weekend, while bull traders have outmuscled the bears in the derivatives markets with over $26 million excess LONG positions.

But worryingly, Solana price could stumble at the $155 resistance level due to the growing bearish sentiment surround the broader crypto market after BTC fell to a 30-day low of $65,000 in the early hours of Monday June 17.

In confirmation of this stance, the Liquidation map chart shows that majority of the active SHORT contract in the Solana futures markets have been mount around the $155 price level.

Solana price forecast SOL/USD
Solana price forecast SOL/USD

As seen above, Solana bear traders are set to lose over $67 million of the active $82 million SHORT leverage contracts if prices rise above the $155.1 mark. If they deploy stop-loss orders or stage massive sell-offs to avert that huge loss, Solana price could struggle to maintain the upward trajectory in the days ahead.

In terms of short-term support, Solana bulls will likely defend the $140 support to avoid booking over $93 million in potential liquidation losses.

This puts SOL price is position to consolidate within the $142 – $153 narrow channel, while the crypto market awaits the next major trend catalyst.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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