Solana on the Horizon: A Leading Candidate in the Bull Market?

Crypto News- Despite facing setbacks during the FTX contagion in 2022, Solana (SOL) has staged an impressive comeback in 2023, defying expectations and surpassing its peers in terms of price performance. Over the last 30 days, SOL has seen a remarkable 180% increase, reaching a peak of $62 on November 11.

The resurgence of SOL holds particular intrigue, especially given its previous characterization as ‘dead.’ Notably, a post by trader Bluntz Capital highlighted SOL’s resilience, even in the face of FTX’s substantial daily sell-offs ranging from 250,000 to 700,000 over the past three weeks.

Solana on the Horizon: A Leading Candidate in the Bull Market?

Key players in the market, such as the Grayscale Solana Trust (GSOL), have played a crucial role in supporting SOL’s price action. GSOL offers investors exposure to Solana without direct ownership of the token. Yahoo Finance data reveals that the price per GSOL share is $202, with a premium rate surge of 76.99% in the last 24 hours, indicating a notable increase in institutional investment.

SOL has demonstrated impressive strength against selling pressure, and if institutional liquidity continues to flow into the Solana market, the growth momentum may persist. However, caution is warranted as the Relative Strength Index (RSI) on the SOL/USD daily chart has reached 88.28, traditionally considered overbought. While a price reversal might be expected, the bullish sentiment and demand for SOL have prevented it from falling below $58 after a drop from $62.

The potential for SOL to sustain its buying momentum raises the possibility of a push towards $70. Nonetheless, a retracement to $55 is conceivable, particularly given the overbought conditions indicated by the upper band of the Bollinger Bands (BB) touching SOL at $58.93. The expanding BB suggests significant short-term price fluctuations, keeping expectations high for a potential exponential increase in SOL’s value. In the long term, SOL stands a strong chance of outperforming several blue-chip cryptocurrencies, fueled by the current hype surrounding the token.