Solana (SOL) Price Hits 2023 High
The price of Solana (SOL) has risen by 40% this week, reaching a new high for 2023 at approximately $58. This surge is the most significant weekly gain for Solana since January 2023. Various factors have contributed to these gains, including the overall uptrend in the cryptocurrency market driven by the excitement over the Bitcoin ETF and an increased appetite for risk.
FTX-dump Fears Fail to Shake Solana Bulls
Solana’s recent increase comes despite daily sales of 250,000-750,000 SOL tokens by the FTX bankruptcy estate over the last two weeks. The Delaware Bankruptcy Court approved the sale of 55.75 million SOL tokens in September 2023. Initially, there were concerns about these sales, but their limited impact, combined with investor enthusiasm due to vested or locked tokens and a weekly sale limit of $100 million, has transformed those fears into optimism.
For example, Solana-focused funds witnessed inflows worth $10.80 million in the week ending Nov. 3, according to CoinShares.
Solana Open Interest and Funding Rate Surge
Solana’s futures open interest reached around $772 million on Nov. 11, marking the highest level since November 2021 when SOL’s price hit a record high of $260. High open interest levels indicate greater interest and potentially greater liquidity in the market.
Simultaneously, there has been an increase in funding rates paid by one side of perpetual contracts to the other every eight hours. A positive funding rate indicates that buyers are dominant in the market. Earlier this week, SOL’s funding rate increased to 0.035% per eight hours, suggesting strong bullish sentiment in the market.
SOL Price Technical Breakout
Solana’s recent gains are part of a bullish breakout move. The price broke above the horizontal trendline resistance of its ascending triangle channel two weeks ago. If this pattern continues, the upside target for SOL price before the end of the year is around $90.
However, bears will be looking at the weekly relative strength indicator (RSI), which is now at its most overbought level since September 2021. This indicates a potential correction toward the triangle’s upper trendline near $30.
Hot Take: Solana Continues to Surge
Solana’s impressive performance this week has captured attention due to its significant rise and bullish technical indicators. Despite concerns about token sales and potential corrections, investor enthusiasm and institutional flows have buoyed SOL’s price to new heights as it remains one of the best performers in recent months.
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