Is the SOL Rally Sustainable?
Over the past month, Solana (SOL) has experienced a significant rally, rising by over 149%, as indicated by technical analysis in mid-October. This surge has led to questions about the sustainability of the rally and whether the cryptocurrency’s price will soon collapse.
The current Solana rally is reminiscent of the one that occurred in April and May 2021 when it reached $53 and $61 levels. However, historical data shows that SOL retraced below $30 and even dropped below $25 before entering another rally, surging to all-time-high levels of about $250.
The recent drop in SOL’s price is likely due to pressure from the sale of FTX assets and the voluntary offboarding of Lido DAO node operators, rather than a broader shift in market sentiment.
Can the SOL Rally Reignite?
Optimism about the future of Solana doesn’t hinge on a repeat of the 2021 summer rally. Despite Bitcoin’s temporary slowdown, overall market enthusiasm remains high. Additionally, Solana is expected to receive a boost on November 14 when Coinbase plans to launch perpetual futures trading for SOL and Avalanche (AVAX).
Hot Take: The Future of Solana
The future of Solana is uncertain, but there are reasons to remain optimistic despite concerns about its sustainability. The upcoming launch of perpetual futures trading by Coinbase could provide a significant boost to SOL’s value, demonstrating that there is room for growth and potential future rallies.
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