- Despite concerns about FTX liquidation, SOL’s price has surged by over 5% in a day.
- In 2023, SOL rallied by almost 102% compared to BTC’s 64% growth.
The leading altcoin Solana (SOL) has displayed significant spring in the face of liquidation concerns, as its price surges ahead with notable gains. Over the last few days, SOL has seen impressive growth, soaring by nearly 5% in the last 24 hours alone. The current SOL price is trading above the $20 range, and the daily trading volume has surged by 43% to reach $284 million. Notably, SOL has extended its weekly gains to an impressive 12%.
What makes this rally even more interesting is that it has occurred despite fears of FTX liquidating a substantial quantity of SOL tokens. This unexpected surge in investor interest in SOL signals a bullish sentiment towards the token.
Since the beginning of the year on January 1, 2023, Solana has recorded a rally of nearly 102%. This performance outpaces even that of Bitcoin (BTC), which has witnessed a 64% growth during the same period. SOL has emerged as one of the standout performers in the financial market in 2023.
Solana (SOL) Still in Bearish State
However, it’s important to consider that Solana exhibited a bearish market structure on its daily chart, becoming apparent on August 5 when it slipped below the recent higher low of $22.63. In mid-August, SOL experienced a significant downward movement, with a 23.8% decline over 8 days, hitting its lowest point of $19.33. Also, on September 12, the price of SOL declined to $17.74.
As of the current situation, the downtrend and market structure for SOL remain intact. The Relative Strength Index (RSI) is below the neutral 50, highlighting the prevailing bearish momentum. For the bullish scenario, it is crucial for SOL to hold the line at the retracement level at $20.63.
A potential buying opportunity may arise if SOL tests this critical level, with potential price targets including the highs at $25.5, $29, and an ambitious target of $32. At the time of writing, the price of Solana was recorded at $20.34, indicating it is currently trading above the Exponential Moving Average (EMA).
In conclusion, Solana’s recent performance has defied expectations, with the token showcasing its resilience and attracting significant investor interest. In the midst of these developments, Raoul Pal, a former Goldman Sachs executive, has expressed his bullish outlook on SOL. Pal believes that Solana is one of the most promising blockchain projects, standing shoulder to shoulder with Ethereum (ETH) in terms of potential.
