Solana is back in the green after ‘walking’ on eggshells since late last week. At least half of the gains accrued from June’s low of $12.80 washed down the drain with SOL extending the rout from the July high of $32.24 to the current support in August at $20.
Trading at $21.74 on Thursday, the smart contracts token has seen $412 million in trading volume rush in while the market cap ticks slightly up to $8.8 billion.
Several adoption developments involving Solana Pay could be the cause of this uptick. However, the crypto market has generally been trending north on Thursday led by Bitcoin reclaiming $26,000 and lifting to touch $26,800.
SOL Price Nurturing Rebound Above $20
Solana is on track to a significant recovery following the dip to $20. Bulls are ready to push the current price of $21.74 per token to the psychological resistance between $30 and $32, however, they must first deal with the immediate hurdle at $21.98, highlighted by the 100-day Exponential Moving Average (EMA) (blue).
This building bullish momentum should also be strong enough to disperse the seller congestion near $23 which is a confluence resistance created by the 50-day EMA (red) and the 200-day EMA (purple), otherwise, Solana risks tumbling below the critical $20 support, with a target of $17.5 as provided for by the lower ascending trendline.
Although the Relative Strength Index (RSI) did not make it to the oversold region below 30, the trend strength indicator reveals the increasing influence bulls have on SOL price. A recovery is underway with the RSI likely to cross into the upper half of the neutral zone and top this up with a flip above the moving average.
That said, more conservative traders may want to wait until Solana breaks and holds above the $23 hurdle. This way they would be in a better position to avoid sudden rollbacks, especially if SOL price fails to rise above the immediate resistance at the 100-day EMA.
Shopify Integrates Solana Pay for USDC Payments
Solana Labs’ Solana Pay will according to a recent announcement via TechCrunch, be used to support USDC payments on Shopify, a platform that brings together millions of merchants.
Launched in February 2022, Solana Pay is hosted on the Solana blockchain, a layer 1 protocol. USDC, on the other hand, is the second-largest stablecoin after Tether (USDT) boasting $26 billion in market capitalization.
Although USDC is the first token to be integrated, it will not be the first, as Shopify plans to support other altcoins like SOL and BONK in the future. Shopify is one of the largest e-commerce platforms in the world, accounting for 10% of the US market in addition to $444 billion in global economic activity.
Solana Pay has so far achieved 11.5 million active user accounts thanks to its adoption by major crypto players such as Circle and Phantom.
“Some people argue the killer app for crypto hasn’t arrived, but it has: it’s payments,” Josh Fried, business development and partnerships at Solana Foundation said. “[Everyone] should be doubling down on this.”
Credit card payments are costly for shoppers but Fried says the switch to Solana Pay promises significantly lower transaction fees, averaging at $0.00025.
This adoption on Shopify, although starting with USDC would in the future include tokens in the Solana ecosystem like SOL and BONK. Such an adoption would mean exposure to millions of users globally, thus creating demand and eventually driving their prices up.
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