The price of Solana (SOL) has surged 26% over the past week, outperforming most major cryptocurrencies as it breaks key resistance levels. This latest rally comes despite initial fears that SOL tokens could be dumped en masse by bankrupt crypto exchange FTX.
Keypoints
- Solana (SOL) price has rallied 26% over the past week, defying fears of potential selling by the FTX bankruptcy estate.
- SOL gained 11% on Friday, reaching $29. It has outperformed most major cryptos over the past week.
- Concerns over FTX subsidiary Alameda Research dumping its SOL holdings proved overblown so far.
- Alameda’s recent staking of 5.5 million SOL worth $122 million helped calm market worries about mass selling.
- SOL saw massive inflows into investment products, with $24 million entering last week according to CoinShares.
- Network activity on Solana blockchain increased recently, signaling growing adoption and usage.
- A recent Solana upgrade also added encryption and reduced hardware requirements for validators.
- Technicals show SOL broke out against Ethereum, while it’s testing resistance around $27 which could lead to a move toward its yearly high around $38.
- Analysts remain predominantly bullish on SOL, forecasting a continued rally to new 2022 highs and even $250 in the long run.
SOL gained 11% on Friday to reach $29, testing upside barriers that could lead to a move toward its 2022 high around $38 if cleared decisively. Solana has been one of the best performing digital assets this year, advancing 170% even after steep declines in the FTX-led crypto market turmoil.
Concerns emerged that Solana could plummet if the FTX-Alameda bankruptcy estate liquidated its massive SOL stash acquired under Sam Bankman-Fried. However, those fears were tempered after Alameda recently staked 5.5 million SOL worth over $100 million.
Meanwhile, on-chain data shows activity on the Solana network has picked up recently. A protocol upgrade also added new encryption features and lowered validator hardware requirements, signaling a focus on scaling and security.
The recent bullish price action reflects growing confidence Solana can thrive beyond the FTX fallout, with analysts predominately optimistic on further upside. The break past resistance in the $27 range could validate the bullish trend, opening the door to test yearly highs around $38.
Failure to hold the breakout would invalidate the bullish outlook and likely precipitate a sharp drop back toward the $18 support zone. For now, analysts cite strong bullish momentum and inflows into Solana investment products driving its robust performance.
If the rally continues, Solana looks on track to post a new yearly high for the first time since late 2021. Some analysts even forecast SOL reaching $250 in the long run, which would require almost a 10x from current levels. But with Solana still facing lingering doubts over its future post-FTX, the next few weeks will be pivotal in determining if bulls can sustain upside momentum.
