SOL, Solana’s native coin, has seen its value increase since the announcement of its impending merger with Helium. HIP 70 was a proposal by Helium’s developers, and aimed at relocating the whole Helium supply chain from Helium to Solana.
Developers behind Helium have stated that increasing the network’s scalability, stability, and speed were the primary motivations behind the merger.
According to a Medium post published by Solana on August 31, the company proposes migrating the Helium ecosystem from the L1 chain to its own “highly-scalable and fast blockchain,” which will allow for “higher uptimes, greater composability, and a faster user experience while maintaining the security and low cost of using the Helium Network.”
SOL Trading Volume Up A Decent 250%
Recent data shows that SOL’s trading volume has increased by an impressive 250 percent, from a recent low of $675,184 to today’s trading volume of $1,685,409.
Prices tend to increase when business volumes rise. In just twelve hours, the price rose 11.52 percent on September 2. The latest upward trend resulted to a $38.06 price.
However, Wednesday saw a very severe correction following this bull pattern. Rising prices can lead to a selloff as some traders might seek to profit.
This occurred shortly after SOL’s price peaked at $38.82. Only one day had passed since the bull move.
Solana-Helium Merge To Shape Investor Confidence
After the market’s upswing, the CCI and Stoch RSI values indicated that the coin was overbought, triggering sell signals.
The attractiveness of short-term positions also increased due to the fall in prices. Market data suggests that the market is currently dominated by short sellers. A majority of the nine top cryptocurrency exchanges is dominated by short sellers.
Market participants are trying to reverse the market’s decline by testing the 100 percent Fibonacci level. The 50-day exponential moving mean acts as support.
With the current timetable of the Helium-Solana merger still in the voting phase, the event’s hoopla can be a precursor of either a greater rise or a lower fall.
The outcome of the vote will at least determine the sentiment of SOL’s investors. It is just a matter time until the results of the vote are revealed.
SOL market capital at $11.5 Billion according to the daily chart. Source: TradingView.com| Source: TradingView.com Featured image taken from Exodus Wallet. Chart by TradingView.com