The Resilient Rise of Solana (SOL) Price
The SOL price has displayed impressive resilience lately, surging over 73% in the last 30 days despite the broader crypto market’s turmoil following FTX’s bankruptcy. On November 1st, SOL hit a new yearly high of $46.90 before experiencing a slight pullback, having previously broken through the crucial resistance level around $28 in late September. This breakout was foreshadowed by SOL surpassing a long-term descending trendline in July, which has since acted as support and confirmed the upward move.
Keypoints
- SOL reached a new yearly high of $46.90 on November 1 but struggled to close above the $47 resistance level, currently attempting to surpass it again.
- In July, SOL broke through a long-term descending resistance trendline, which has since provided support and validated the upward momentum.
- The weekly RSI and daily price action are bullish, supporting the continuation of the uptrend.
- FTX’s holdings raised concerns about potential selling pressure on SOL, but most of FTX’s SOL is locked until 2028, minimizing short-term impact.
- Long-term BTC holders’ reluctance to sell amid Bitcoin’s rally suggests confidence in higher prices ahead.
- SOL price has surged over 73% in the past month and could potentially break out above $45 or retest lower support around $35.7.
Technical Analysis and Outlook
Technical analysts note that both the weekly RSI and daily price action support a continuation of the uptrend. The RSI recently crossed above 50 into bullish territory and continues rising. Additionally, the current SOL price action likely represents the third wave of a five-wave Elliott formation, typically the longest and strongest part of this pattern. Initial upside targets sit around $68 based on typical wave relationships, with a daily close above $48 confirming the breakout.
SOL did face resistance at the $47 level last week, signaling that overcoming the $47-$48 zone will be challenging. Support is seen around $38 based on recent trading patterns. Concerns about heavy selling pressure due to FTX’s holdings have been alleviated by most tokens being locked until 2028.
Gaining Market Share and Optimistic Outlook
SOL appears poised to gain market share against other “Ethereum killers” like Cardano (ADA), boasting higher daily active users while still trading at a discounted valuation relative to ADA. Staking activity and developer participation within Solana’s ecosystem continue trending upwards despite market volatility, reflecting genuine utility and demand that should eventually impact SOL’s price positively. With bullish technical and fundamental factors aligned, traders remain optimistic about SOL retesting the $47 zone soon.
Hot Take: Solana’s Resilience Amid Crypto Turmoil
The remarkable resilience displayed by Solana’s (SOL) price amidst recent crypto market turmoil is evident in its impressive 73% surge over the past month. Despite facing challenges such as resistance levels and concerns about potential selling pressure due to FTX’s holdings, SOL remains poised for further gains based on bullish technical indicators and genuine demand within its ecosystem. With its strong fundamentals and positive outlook, SOL continues to stand out as an attractive investment option in today’s volatile crypto landscape.
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