Solana (SOL) Price Surges 26% Despite Fears of Selling by FTX
The price of Solana (SOL) has experienced a significant surge of 26% in the past week, outperforming other major cryptocurrencies and breaking through important resistance levels. Initially, there were concerns that SOL tokens could be sold off by bankrupt crypto exchange FTX, but these fears have proven to be unfounded so far.
SOL Gains 11% and Tests Upside Barriers
On Friday, SOL gained 11% and reached $29, testing the upper limits that could potentially propel it towards its 2022 high around $38 if successfully cleared. Despite the recent crypto market turmoil led by FTX, Solana has been one of the best-performing digital assets this year, with a 170% increase.
Alameda Research’s Stake Calms Market Worries
Concerns about a potential sell-off were eased when Alameda Research, a subsidiary of FTX, staked 5.5 million SOL worth over $100 million. This move helped alleviate concerns of mass selling and contributed to the market’s confidence in Solana.
Inflows into Investment Products and Growing Network Activity
Last week, there was a significant influx of $24 million into Solana investment products, as reported by CoinShares. Additionally, on-chain data indicates an increase in network activity on the Solana blockchain, signaling growing adoption and usage.
Protocol Upgrade Enhances Security and Scalability
A recent upgrade to the Solana protocol introduced new encryption features and reduced hardware requirements for validators. This upgrade demonstrates a focus on enhancing security and scalability within the network.
Bullish Technicals and Analyst Forecasts
Technical analysis suggests that SOL has broken out against Ethereum and is currently testing resistance around $27. If this resistance is overcome, it could lead to a move towards the yearly high of $38. Analysts remain predominantly bullish on SOL, predicting further upward momentum and even long-term targets of $250.
Hot Take: Solana’s Continued Rally Amidst FTX Fallout
SOL’s recent surge in price indicates growing confidence that Solana can thrive beyond the FTX fallout. The break past resistance levels and strong bullish momentum suggest a positive outlook for the cryptocurrency. However, the next few weeks will be crucial in determining whether bulls can sustain this momentum amidst lingering doubts about Solana’s future post-FTX. If the rally continues, Solana may achieve a new yearly high and potentially reach long-term targets of $250.
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