Solana (SOL) Shows Potential for More Gains, Despite Incoming Supply
Amid a bullish start to the week in the cryptocurrency sector, Solana (SOL) is positioned for further gains, as long as the incoming supply of SOL doesn’t hinder its prospects. According to pseudonymous crypto analyst Altcoin Sherpa, Solana’s exponential moving average (EMA) is healthy, making it one of the best assets to invest in.
Altcoin Sherpa’s analysis suggests that if Solana’s EMA remains above $27, the next target area would be around $37. However, there is concern about the upcoming supply of SOL from FTX, the collapsed crypto exchange that received court approval to liquidate $3.4 billion in cryptocurrencies, mainly consisting of SOL.
Despite these concerns, Solana has been one of the top-performing cryptocurrencies in 2023, with a gain of 197.77% since the beginning of the year. This can be attributed to increased activity on its network and a recent upgrade that lowered validator hardware requirements and introduced optional zero-knowledge-compatible encryption for transactions.
Hot Take: Solana Poised for Growth Despite Supply Concerns
Solana’s strong performance and positive indicators make it an attractive investment option in the cryptocurrency market. With its healthy exponential moving average and potential for further gains, it stands out as one of the best assets to consider. However, investors should remain cautious about the incoming supply of SOL from FTX, which could impact its price trajectory.
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