Solana (SOL) is hovering around $146 on Sunday as traders process the debate between executives at the Breakpoint crypto conference. The event, held annually since 2021, featured discussions on the future of the Solana Foundation, with two executives advocating for its dissolution versus preservation.
Potential for Price Gains Amid Foundation Debate
At the conference, Solana Foundation’s Executive Director, Dan Albert, argued for the dissolution of the Foundation, suggesting that the ecosystem could operate effectively without it. He warned that if the SOL token’s value continues to rise alongside the Foundation’s growth, it could become “an inefficient, bureaucratic monstrosity.” Despite the ongoing debate, technical indicators suggest there is still potential for price gains in Solana.
Albert’s position was challenged by Viktor Fischer, CEO of venture capital firm RockawayX. Fischer argued that dissolving the foundation would have negative repercussions for the project, as the Solana Foundation plays a crucial role in providing strategic direction for the network. He emphasized that the community thrives at hackathons, fostering kinship and growth, and that dismantling the foundation would leave the SOL community vulnerable to censorship, discrimination, and subversion.
SOL Eyes a Rally to $160
Solana is currently in a multi-month upward trend, having started its ascent toward the March 2024 peak in October 2023. Although the altcoin has since corrected to $146.88, it has the potential to rally to $160, aligning with the 50% Fibonacci retracement level from the decline between the $210 peak in March 2024 and the $110 low in August 2024.
SOL faces resistance within the imbalance zone between $149.30 and $155.53. Additionally, the Moving Average Convergence Divergence (MACD) indicator suggests positive underlying momentum in SOL’s price trend.
Solana may find support in the zone between $134.45 and $141.18, as indicated on the daily chart. This imbalance zone serves as a crucial support area for the cryptocurrency.
