The Solana (SOL) Price Soars to New Yearly High
The price of Solana (SOL) has experienced a rapid increase in October, reaching a new yearly high of $32.81. This surge in price was accompanied by a breakout from a horizontal resistance level at $28. Additionally, the Relative Strength Index (RSI) reached its highest value since November 2021.
Solana Recovers from FTX Crash
In November 2022, the SOL price plummeted from $31.72 to $12.34 due to the bankruptcy of the FTX exchange. However, recent data shows that SOL has fully retraced this drop. Furthermore, trading volume has reached $1.7 billion, marking the highest value in over three months.
Total Value Locked Reaches New High
The Total Value Locked (TVL) for the Solana blockchain has reached $367 million, which is a new yearly high. However, this still only represents 3% of the all-time high of $10 billion recorded in November 2021.
Analysts’ Bullish Predictions for Solana
Cryptocurrency traders are predominantly bullish on SOL following its breakout from the main resistance area. Analysts such as Pentosh1 and SatoshiWolf predict that SOL will continue to rise and potentially reach levels above $37. However, SatoshiWolf suggests that the $37 area may be a good point to take profits due to numerous resistances.
Predicting the Duration of the Price Increase
The weekly time frame chart for SOL shows a decisively bullish trend, with the price closing above the $28 resistance area. The weekly RSI also supports further upward movement, indicating that bulls still have the advantage. If the increase continues, the next resistance area to watch is at $46.
Possible Downside Risk
While the overall outlook for SOL is positive, a weekly close below the $28 resistance area could invalidate the breakout and potentially lead to a 40% drop to a long-term ascending support line at $20.
Hot Take: Solana’s Price Surge Continues
The price of Solana (SOL) has reached a new yearly high, breaking through resistance levels and attracting bullish sentiment from analysts. With strong trading volume and increasing Total Value Locked (TVL), SOL has shown resilience in recovering from previous setbacks. However, caution should be exercised as a potential downside risk exists if the price fails to sustain its breakout. Overall, Solana’s price surge reflects growing confidence in the project and its blockchain ecosystem.
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