Grayscale Brings Solana [SOL] to OTC Trading: Is the Cryptocurrency Primed for a Bull Run?

Solana [SOL] Listed on Grayscale Investment’s OTC Markets

On 17 April, Grayscale Investment, the American digital currency management company, announced that Solana [SOL] had become the 16th digital asset to be listed on Over-The-Counter (OTC) markets. The Solana Trust will now be trading under the symbol GSOL, which could potentially increase the adoption of SOL and pave the way for more institutional investment in the token.

The OTC market is a decentralized market where participants trade financial instruments that are not listed on major exchanges.

Revelation of Investments

Grayscale has revealed that putting GSOL as a public-quotation investment vehicle was not without thought. According to the firm, they made the decision to reveal the value of Solana held by the Trust.

Following the announcement, the Solana Total Value Locked (TVL) reneged from its month-long 19.29% hike. This means that the Proof-of-History (PoH) blockchain was still struggling with attracting significant investors’ deposits into its underlying chains.

One major reason for this could be linked to the FTX collapse, which acted as the driver of Solana’s TVL exit from the billion-dollar mark.

On-chain data showed that SOL still had some backing from notable market activity. For one, social dominance, which was at its lowest around March, peaked at 1.344% at press time. Although quite minimal, the rise in dominance means that the discussions around the asset had increased, impacting the motive to capitalize on SOL’s price, as it seemed far from the top.

Strength Behind the SOL Value

The volume had also increased, with the on-chain volume having increased to 595.65 million, according to Santiment. This implies that there was strength behind the 12.79% seven-day uptick.

The Moving Average Convergence Divergence (MACD) was exhibiting bullish signals, with the indicator having crossed from below the zero line. This means that traders could start opening long positions by taking advantage of increasing upward momentum. The Relative Strength Index (RSI) was 64.67, inferring how the buying momentum has overcome possible selling pressure. However, SOL might need to avoid reaching an overbought region around 70 to escape a retracement.

Conclusion

Solana’s listing on Grayscale Investment’s OTC markets could potentially increase its adoption and pave the way for more institutional investment in the token. While the Solana Total Value Locked has struggled to maintain its month-long hike, SOL still has backing from notable market activity, indicating strength behind its value. The Moving Average Convergence Divergence (MACD) was exhibiting bullish signals, while the Relative Strength Index (RSI) was 64.67, suggesting that SOL’s buying momentum has overcome possible selling pressure.

• On 17 April, Solana [SOL] became the 16th digital asset to be listed on Grayscale Investment’s OTC markets.
• The OTC market is a decentralized market where participants trade financial instruments that are not listed on major exchanges.
• The Solana Trust will now be trading under the symbol GSOL.
• Solana’s Total Value Locked has struggled to maintain its month-long hike.
• SOL still has backing from notable market activity, indicating strength behind its value.

In conclusion, the listing of Solana on Grayscale Investments’ OTC markets could lead to increased adoption of the token and pave the way for more institutional investment in the future. Despite the recent drop in Solana’s TVL due to the FTX collapse, the token still has notable market activity, such as an increase in social dominance and on-chain volume, indicating strength behind the recent seven-day uptick. The bullish MACD and RSI further support the upward momentum of SOL’s price. However, traders should be cautious of reaching an overbought region to avoid a potential retracement.