Solana is distinguishing itself in the crypto market, with a remarkable 50% monthly gain and an extraordinary 450% year-to-date increase, contributing to the overall surge in optimism.
This trend is further amplified by Bitcoin’s ascent beyond $37,000 and its ambitious aim to reach $40,000 by year-end. Solana’s standout performance adds a notable dimension to the current positive sentiment prevailing in the cryptocurrency space.
In an early morning rally, Solana broke the $50 barrier, marking its highest point since May 22, 2022. This exceptional performance underscores growing confidence in the crypto space, with Solana’s breakout signaling its prominence in the current market rally.
The huge increase in the price of SOL can be ascribed to the significant advancement of BlackRock’s application for an Ethereum exchange-traded fund (ETF). This observation signifies an increasing acknowledgment and approval of assets built on the Ethereum platform, which in turn contributes to the favorable trajectory of the overall cryptocurrency market and has a specific influence on the performance of Solana.
In particular, this upsurge also transpired during the ongoing liquidation of SOL tokens by the bankruptcy estate of FTX. Just this September, the Delaware Bankruptcy Court granted approval for the disposal of the assets of the defunct exchange, comprising 55.75 million SOL.
Following its annual conference, Solana saw an impressive price spike that demonstrated its durability in the face of uncertainty surrounding FTX Group, a major SOL token holder that is currently experiencing financial turmoil.
SOL market cap at $22.7 billion on the weekend chart: TradingView.com
SOL’s increasing trajectory looks to favor FTX creditors notwithstanding FTX’s contradictory declarations regarding its investment. SOL’s current trading range may be able to recover the losses incurred by FTX exchange users, according to Thomas Braziel, CEO of 117 Partners.
The Founder of FTX Group, Sam Bankman-Fried, is facing legal action for allegedly embezzling client monies, which is why this is happening.
Solana Enjoys Sustained Upward Trajectory
Meanwhile, Jacob Canfield, a well-known figure in the realm of cryptocurrency trading, has provided an analysis elucidating his belief in the continued upward trajectory of the Solana price surge. Canfield expressed his belief that Solana is poised to maintain its position as one of the most influential entities in the ongoing bull market cycle.
In my opinion, I think that @Solana is going to continue to be one of the biggest movers during this current bull market cycle and I’m going to lay out some ideas for you.
It’s possible that with the Ethereum ETF news that some of these ideas don’t play out, but it’s worth… pic.twitter.com/oii8vWs0W9
— Jacob Canfield (@JacobCanfield) November 9, 2023
In another development, the declining trend of Solana’s total value locked (TVL), reflecting the amount deposited in its smart contracts, has reversed after six consecutive weeks. In the last three days alone, Solana’s DApps deposits have experienced a 10% increase.
Although the current level of 11.1 million SOL remains below the pre-FTX exchange bankruptcy level of 30 million SOL, this recent upward trend indicates that the Solana network may have passed its worst period.
SOL TVL. Source: DefiLlama
In the upcoming days, the trajectory remains dynamic and uncertain as the intricate dance between bulls and bears unfolds. A substantial downturn could be in the cards for Solana if the bears persist, testing a critical support at $38.77 within the current month.
On the flip side, failure to sustain prices above $54.01 and a bearish takeover may lead to a loss of momentum, resulting in a descent to the $46.83 support level.
However, should the bulls maintain control and keep the price above $54.01, the market is positioned for a robust upswing, potentially challenging the $57.84 resistance. Furthermore, a breakthrough past the $60.06 mark could pave the way for a sustained rally towards the upper resistance of $65.08.
Will SOL Reach $60 This November?
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Pixabay