SOL Strategies’ stocks spiked by more than 20% with increasing validators and growth in the company’s STKESOL liquid staking platform. However, the growth has not been reflected in Solana prices as it currently struggles at the 2024 January lows.
Canadian crypto company that focuses on the Solana ecosystem, SOL Strategies, Inc., saw its stock prices spike by approximately 22% as the validators on the network increased. The validator count on the network grew to 33,568 unique wallets in February, up from the 31,000-wallet milestone reached on February 2.
Liquid staking on SOL reaches approximately 700K SOL
“Growth continues to be driven by multiple distribution channels, including device and mobile integrations, third-party wallet partnerships, and the company’s STKESOL liquid staking platform,” read the SOL Strategies’ official press release. The total SOL staked in STKESOL hit 691,039 SOL, while the unique STKESOL holders reached 1,034.
Prices stumble at 2024 January levels
Despite all the on-chain metrics showing good numbers, SOL prices are still struggling to get going. Priced at $90 at the time of writing, Solana is still being supported at January 2024 levels. With the market conditions getting better, there is a widespread conception that this could be Solana’s bottom, and the prices could start to surge from here. Although the daily chart looks convincing that Solana is bottoming, it is important to check the shorter time frame charts.
On a 4-hour chart, SOL is trading inside a rising wedge, making higher highs and higher lows as the wedge gets narrower. Inside a rising wedge, traders initially remain bullish as the price continues to make higher highs and higher lows, attracting buyers who expect the uptrend to continue.
However, as the pattern develops, the price range narrows and momentum weakens, often accompanied by declining volume. During this phase, early buyers may begin taking profits while experienced traders watch for signs of exhaustion. Close to the apex, the selling pressure tips the buying pressure, and prices crash.
If the pattern is completed and a conventional breakout follows, SOL prices will crash, which nullifies the argument that SOL has reached its bottom. However, smaller time frame charts are very sensitive to the market, and they absorb a lot of noise; as such, traders wait for the markets to make a move at times like these.
