Will Solana (SOL) Be the Shining Star of the Bull Market?

• About 250,000 to 700,000 SOL have been offered each day by FTX for the final three weeks.
• SOL’s value jumped above $60, as GSOL’s premium additionally elevated.
• Whereas the value could retrace, it could not take lengthy earlier than SOL hits $70.

Regardless of being a notable casualty of the FTX contagion in 2022, Solana (SOL) has defied all odds in 2023, as the value continues to outshine its friends. Within the final 30 days, the worth of SOL has elevated by 180%, rising as excessive as $62 on November 11.

Nonetheless, the rising value of SOL just isn’t the one fascinating factor the token has proven by the token. For a token that was as soon as described as lifeless, it has proven great energy. Coin Version got here to this conclusion due to a submit by dealer Bluntz Capital.

The Huge Gamers Are Right here

In accordance with Bluntz, FTX, after getting the go-ahead to liquidate its property, has been promoting round 250,000 to 700,000 each day for the final three weeks. Whatever the gross sales, SOL has didn’t nosedive. Relatively, the value has chosen the upside.

In the meantime, there have been different entities backing the SOL value motion. One of many main ones is the Grayscale Solana Belief (GSOL). Not like, SOL which permits possession, GSOL solely permits traders to realize publicity to Solana with out truly proudly owning the token.

A take a look at Yahoo Finance’s knowledge confirmed the value per share of the asset was $202. Additionally, the premium fee has grown by 76.99% within the final 24 hours. This progress implies that there was a surge in institutional cash allotted to GSOL.

SOL Resists Reversal, Eyes $70

In return, the SOL worth has additionally proven very good energy and resisted promoting stress. Additionally, if the institutional liquidity continues to circulation into the Solana market, SOL could not decelerate on its progress. 

Nonetheless, the Relative Energy Index (RSI), as proven by the SOL/USD each day chart was 88.28. Sometimes, RSI readings like this are thought of overbought. So, the SOL value is meant to reverse.

Whereas the value had dropped from $62, the bullish sentiment the market has and the demand for the token has ensured that it hasn’t fallen under $58. Ought to SOL maintain the present shopping for momentum, then the value could head within the $70 course.

However earlier than that, there’s a probability {that a} retrace happens, most likely to $55. The higher band of the Bollinger Bands (BB) touched SOL at $58.93 and likewise confirmed that it was overbought. Nonetheless, the BB growth implies that there might be huge value fluctuations within the brief time period.

So, anticipating an exponential enhance within the SOL worth just isn’t out of order. In the long run, there’s a excessive probability that SOL outperforms quite a lot of blue-chip cryptocurrencies contemplating the present hype round it.