- Solstice launched an SLX stake with stSLX, offering 20% APY funded by the Treasury.
- SLX price is witnessing a short-term recovery trend line amid a rising wedge pattern formation on the daily chart.
- The traditional pivot level of $0.261 and $0.3 appears as immediate resistance for SLX, while potential support area is located at $0.190 and $0.157.
SLX, Solstice’s token, rose nearly 15% before US market hours on Wednesday to trade at $0.221. The main catalyst behind this rally was the recent official token launch and simultaneous listing on major cryptocurrency exchanges. The coin’s price gained additional momentum, as the protocol dropped an immediate interest for this new token, allowing users to stake SLX tokens and receive stSLX, offering a base return of 20% APY.
Solstice is boosting the SLX instrument with stSLX Scking at 20% of the base APY
Inversion is a Solana’s native DeFi protocol Which acts as the on-chain yield layer. It makes complex return strategies easy to understand and accessible for individual and institutional investors, and provides institutional-level returns.
Its key features include USX, a fully collateralized synthetic stablecoin backed 1:1 by USD/USDT with real-time Chainlink price proofs, and YieldVault, which provides delta-neutral automated strategies. USX is used as the settlement token, and user deposits are converted into yield positions actively managed by YieldVault.
On May 25, the protocol launched its governance and utility token SLX on major platforms, including Bitget and Kraken, while also entering Binance Alpha and the MEXC Innovative Zone. However, the Solstice team saw significant backlash from the community due to vesting conditions and the volatility of the initial price drop.
Solstice strongly denied the related allegations, explaining that the wallet in question belongs to an authorized market maker that deals with liquidity and price stability. However, the protocol has seen rapid growth and recently crossed the $500 million TVL mark.
Recently advertisementSolistice also introduced its first major utility for SLX, where users can stake the stSLX token, receiving an initial annual reward rate of 20% from the project’s treasury.
This collection mechanism is expected to boost SLX by incentivizing long-term holding, reducing circulating supply and selling pressure, while increasing token utility and demand through prioritized benefits such as vault access, instant withdrawal, credit features, and future governance rights.
If the features gain popularity among users, a large number of SLX tokens will be locked in the staking vault, removing the pressure of immediately selling this supply from the open market.
Rising wedge pattern triggers a short-term reversal price recovery
Since its launch on May 25, Solstice’s price has hovered around the psychological level of $0.2. This volatility is classic post-TGE behavior as the token is still hoped for among early sellers who acquired through the airdrop and new buyers from the new exchange listing.
A deeper analysis of the hourly time frame chart can predict the likely short-term path of the SLX price. As shown in the chart below, the currency price is actively varying between two converging trend lines of a rising wedge pattern.
These two trend lines act as immediate resistance and support levels for Solstice SLX13.26% currency, resulting in a slow but steady rise. Once the initial volatility subsides, the altcoin can attempt to break out of the price on either side of the wedge.
A potential bullish breakout of the resistance trend line at $0.24 could accelerate buying pressure and set the price to rebound to $0.261, followed by $0.3.
Conversely, if sellers are forced to break below the pattern’s lower trend line at $0.21, the coin price may seek the next support at $0.190 and $0.157.
