Solana was up by as much as 20% on Friday, as the token rebounded following recent declines. The token which dropped by over 50% earlier in the week, surged today, as traders seemingly bought the dip earlier in the day. However, sentiment has since shifted following the news that FTX has declared bankruptcy. Polygon was a notable gainer, climbing by as much as 16% prior to the news.
Solana (SOL) was one of today’s notable gainers, as the token rebounded following recent losses.
After falling to a low of $15.06 on Thursday, SOL/USD surged to an intraday high of $18.68 earlier in the day.
SOL was one of the most impacted tokens following the recent collapse of FTX and Alameda, however traders seem to have found an opportunity to buy the dip. Still, Friday’s gains have largely been wiped out, as news of FTX declaring bankruptcy emerged.
Looking at the chart, earlier gains have somewhat eased, as the relative strength index (RSI) of 14 days neared a ceiling.
The index is currently tracking at 38.36, marginally below a key resistance level of 40.00.
In order for SOL to climb closer to $28.00, which seems to be the target of bulls, this RSI ceiling must be broken.
Polygon (MATIC) was also higher in today’s session, as the token edged closer to a key resistance of its own.
Following yesterday’s bottom of $0.9337, MATIC/USD raced to a peak of $1.15 earlier in the day.
The surge, which occurred earlier in today’s session, saw polygon near its long-term ceiling of $1.20.
However, as of writing, the token has moved lower and is currently tracking at $1.04, as sentiment has somewhat shifted.
This appears to be a result of the RSI holding firm, with recent momentum not enough to break a ceiling of 57.20.
The index is now at 53.10, and seems to be moving towards a floor of 51.60, which could lead to MATIC moving back below $1.00.
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What else is behind this afternoon’s change in market sentiment? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
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