Solana (SOL) Soars 40% Hitting New 2023 High Amid Bitcoin ETF Excitement
Summary:
Solana's (SOL) price has risen by 40% within a week, reaching a new high for 2023 at around $58. Solana has shown resilience despite an increase in token sales by the FTX bankruptcy estate. Factors such as Bitcoin ETF excitement and increased risk appetite are driving the broader cryptocurrency market upswing. Despite a high relative strength indicator (RSI), forecasts suggest Solana's price could reach $90 by the end of the year.
Solana's (SOL) price has skyrocketed by 40% in just a week, establishing a new high for 2023 at about $58, marking Solana's most impressive weekly performance since January 2023. The record surge owes its momentum to several elements including a broader cryptocurrency market upswing spurred by Bitcoin ETF excitement and increased overall risk appetite.
The upswing in Solana's value relates to daily sales of 250,000-750,000 SOL tokens in the last fortnight by the FTX bankruptcy estate. Despite the surge in sales by FTX, Solana has held steady, which suggests that these tokens will deplete in a week at the current pace.
The Delaware Bankruptcy Court sanctioned the sale of 55.75 million SOL tokens in September 2023, but the impact has been minimal due to token restrictions, making the initial apprehension morph into robust investor confidence. As an example, Solana-centric funds, an indicator of institutional flows into the SOL market, have attracted inflows totaling over $10.80 million for the week ending November 3, as per CoinShares data.
The rise in cryptocurrency prices, chiefly due to the euphoria surrounding Bitcoin ETF, has seen Bitcoin touch $38,000, while Solana has outshone all over the past 30 days.
The open interest in Solana's futures hit a notable mark of nearly $772 million on November 11, a peak not seen since November 2021 when SOL achieved a historic high of $260. High open interest signals increased market interest and possibly enhanced liquidity.
Furthermore, the increased funding rates paralleling Solana's rising open interest, signifying the dominance of longs or buyers in the market. The funding rate recently hiked to 0.035% per eight-hour interval, suggesting intense bullish market sentiment.
Solana's recent gains seem to arise from a bullish breakout. Remarkably, SOL's price overcame the horizontal trendline resistance of its ascending triangle pattern a couple of weeks back.
If this upward triangle movement plays out, SOL's price could touch around $90 by year-end, marking a 50% increase from the current price levels. Conversely, the risk of a pullback looms large due to the weekly relative strength indicator (RSI) currently at its peak since September 2021.
Investors should remember that investing and trading moves pose risks and thorough research is key before making any decision. This report is intended for informational purposes and does not constitute investment advice or recommendations.
Published At
11/11/2023 3:21:09 PM
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