On Monday, July 21st, the cryptocurrency market witnessed a slight slowdown in buying momentum after a strong rally last week. However, the Solana price shows no sign of stopping as it records a notable gain of +8% today to reach its current trading price of $196.2. The rally comes on the heels of rising institutional interest, particularly following DeFi Dev Corp.’s recent acquisition of 141,383 SOL. The sharp uptick breaks above the breakout from the neckline resistance of the traditional reversal pattern cup and handle, signaling potential for a higher rally.
DeFi Dev Corp Raises $19M via Equity Line of Credit
DeFi Development Corp (DFDV), a publicly traded company that operates in the decentralized finance (DeFi) space, revealed this Monday morning that it has raised $19 million through its equity line of credit (ELOC) and purchased 141,383 SOL at an average price of $133.53.
Following the recent purchase, the company’s Solana treasury now holds 999,999 SOL tokens, worth approximately $181 million. The firm stakes its SOL with a variety of validators, including DeFi Dev Corp.’s own Solana validators, to generate native yield, currently bringing in 867 SOL in a week.
According to the report, its SOL holdings per share (SPS) reached 0.0514, up nearly 13% week-over-week, equating to $9.3 per share. DeFi Dev Corp raised the capital through the issuance of 740,000 shares of common stock, with approximately $5 million of the proceeds remaining available primarily for future SOL purchases.
With active accumulation and staking strategies, DeFi Development Corp highlights the increasing institutional interest in the Solana ecosystem.
Also Read: DeFi Dev Corp
Solana Price Breaks Out of Cup and Handle Reversal Pattern
Since last week, the Solana price has shown a sharp bounce from $157.23 to the current trading price of $196.1, projecting a 25% growth. This recovery trend offered a decisive breakout from the resistance trendline of the reversal pattern called cup-and-handle. Theoretically, the pattern’s cup displays a long accumulation phase and the handle as a slight pullback to recuperate its bullish momentum.
A potential golden crossover between the 50-and-200-day exponential moving averages further reinforces the strengthening bullish sentiment in the market. However, as the broader market shows signs of entering a post-rally correction, the Solana price could see a 4.5% pullback to retest the breached trendline as potential support.
If coin prices manage to hold this support, the post-breakout rally could surge 49% and hit the $2.80 mark. The daily chart shows the potential rally could face in-between resistances at $220, $244, and $264.
