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

• About 250,000 to 700,000 SOL have been sold daily by FTX for the last three weeks.
• SOL’s price jumped above $60, as GSOL’s premium also increased.
• While the price may retrace, it may not take long before SOL hits $70.

Despite being a notable casualty of the FTX contagion in 2022, Solana (SOL) has defied all odds in 2023, as the price continues to outshine its peers. In the last 30 days, the value of SOL has increased by 180%, rising as high as $62 on November 11.

However, the rising price of SOL is not the only interesting thing the token has shown by the token. For a token that was once described as dead, it has shown tremendous strength. Coin Edition came to this conclusion because of a post by trader Bluntz Capital.

The Big Players Are Here

According to Bluntz, FTX, after getting the go-ahead to liquidate its assets, has been selling around 250,000 to 700,000 daily for the last three weeks. Regardless of the sales, SOL has failed to nosedive. Rather, the price has chosen the upside.

Meanwhile, there have been other entities backing the SOL price action. One of the major ones is the Grayscale Solana Trust (GSOL). Unlike, SOL which allows ownership, GSOL only allows investors to gain exposure to Solana without actually owning the token.

A look at Yahoo Finance’s data showed the price per share of the asset was $202. Also, the premium rate has grown by 76.99% in the last 24 hours. This growth implies that there has been a surge in institutional money allocated to GSOL.

GSOL Price (Source: Yahoo Finance)

SOL Resists Reversal, Eyes $70

In return, the SOL value has also shown superb strength and resisted selling pressure. Also, if the institutional liquidity continues to flow into the Solana market, SOL may not slow down on its growth. 

However, the Relative Strength Index (RSI), as shown by the SOL/USD daily chart was 88.28. Typically, RSI readings like this are considered overbought. So, the SOL price is supposed to reverse.

While the price had dropped from $62, the bullish sentiment the market has and the demand for the token has ensured that it hasn’t fallen below $58. Should SOL sustain the current buying momentum, then the price may head in the $70 direction.

But before that, there is a chance that a retrace occurs, probably to $55. The upper band of the Bollinger Bands (BB) touched SOL at $58.93 and also showed that it was overbought. However, the BB expansion means that there could be enormous price fluctuations in the short term.

SOL/USD 4-Hour Chart (Source: TradingView)

So, expecting an exponential increase in the SOL value is not out of order. In the long term, there is a high chance that SOL outperforms a number of blue-chip cryptocurrencies considering the current hype around it.

Source: coinedition.com