Despite being a notable casualty of the FTX contagion in 2022, Solana (SOL) has defied all odds in 2023, as the price continues to outshine its peers. In the last 30 days, the value of SOL has increased by 180%, rising as high as $62 on November 11. A remarkable recovery for a token that was once left for dead.
Meanwhile, there have been other entities backing the SOL price action. One of the major ones is the Grayscale Solana Trust (GSOL). Unlike SOL which allows ownership, GSOL only allows investors to gain exposure to Solana without actually owning the token.
A look at Yahoo Finance’s data showed the price per share of the asset was $202. Also, the premium rate has grown by 76.99% in the last 24 hours. This growth implies that there has been a surge in institutional money allocated to GSOL.
Regardless of the sales, SOL has failed to nosedive. Rather, the price has chosen the upside. According to Bluntz, FTX, after getting the go-ahead to liquidate its assets, has been selling around 250,000 to 700,000 daily for the last three weeks. The fact that SOL has managed to absorb these massive sell-offs and continues to rise in value is a strong indicator of its resilience.
Furthermore, the SOL value has also shown superb strength and resisted selling pressure. If the institutional liquidity continues to flow into the Solana market, SOL may not slow down on its growth.
However, the Relative Strength Index (RSI) has shown that the SOL price is considered overbought, suggesting a potential reversal. While there may be fluctuations in the short term, there is a chance that SOL could sustain its current buying momentum and head towards the $70 mark.
In the long term, there is a high chance that SOL outperforms a number of blue-chip cryptocurrencies considering the current hype around it. The token’s resilience and continued upward trajectory despite significant selling pressure from entities like FTX and increasing institutional investment are positive indicators for SOL’s future performance.
Despite its challenges in 2022, SOL has emerged as a valuable asset with strong potential for further growth and success in the cryptocurrency market.
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