Despite the recent bounce, the SOL price remains within a long-term descending channel, even as Western Union launches a US dollar-backed stablecoin, USDPT, on the Solana blockchain.

At press time, Solana (SOL) was trading at around $89, down approximately 3% over the last 24 hours.

However, the trading volume remained relatively high at over $5.4 billion, indicating increased interest among investors.

Western Union’s decision to launch USDPT on Solana marks a significant move for the blockchain ecosystem.

The newly launched stablecoin is fully backed by US dollars and is designed to be redeemable at Western Union’s global network of cash pickup points, making it a bridge between digital assets and real-world payments and giving Solana practical utility beyond trading and decentralised finance (DeFi).

The stablecoin will also be integrated with wallets and payment APIs, allowing developers and fintech platforms to leverage Solana’s fast transaction speeds.

Solana’s low fees and high throughput make the stablecoin a natural choice for large-scale payment applications, and analysts expect this partnership to drive higher stablecoin activity on the network, which could indirectly increase demand for SOL as the underlying blockchain token.

The USDPT launch adds a unique factor to Solana’s outlook.

Increased transaction volume and institutional interest from Western Union may act as a positive catalyst, providing support for Solana (SOL) in the mid-term.

From a technical analysis standpoint, SOL’s recent price action shows a short-term bounce from the lower boundary of the descending channel.

A hammer candlestick has also formed on the daily chart, indicating buyers are stepping in, although it remains to be seen if the token will still face resistance at the upper boundary of the channel.

A decisive breakout above the channel resistance could see SOL push towards $137 and even higher, signalling a potential trend reversal.

Most importantly, over the next few days, traders should keep an eye on the $90 level, which has become a key short-term support.

A break above this level could open the door for a move toward $100, followed by $125 if bullish momentum continues.

Conversely, staying within the descending channel could keep upward movement limited and maintain pressure on traders looking for a rally.

Failure to defend $90 may push SOL back toward the $77–$88 range.

For now, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) show some mild bullish momentum.

The RSI, which recently rebounded from an oversold region, currently sits just below the middle zone, showing there is still room for bullish gains, although the momentum has turned slightly bearish over the past few hours.

On the other hand, the MACD histogram, while bullish, remains largely flat, showing a lack of enough bullish momentum.

The post Solana price outlook: can Western Union’s stablecoin push SOL higher? appeared first on Invezz

Bitcoin price in Telegram @btc_price_every_hour

2 +