The solana (SOL) price has shown remarkable resilience in recent weeks, posting gains of over 73% in the last 30 days. This bullish momentum comes even as the broader crypto market reels from the fallout of FTX’s shocking bankruptcy.
SOL reached a new yearly high of $46.90 on November 1st before pulling back slightly. It had previously broken out above the crucial resistance zone around $28 in late September. This breakout was foreshadowed by SOL surpassing a long-term descending trendline in July, which has since flipped to support and confirmed the upside move.
Keypoints
- Solana (SOL) price reached a new yearly high of $46.90 on November 1, though it failed to close above the $47 resistance level. It is currently attempting to move above this level again.
- SOL saw a significant breakthrough in July when it surpassed a long-term descending resistance trendline. This trendline has since acted as support, confirming the upside momentum.
- The weekly RSI and current price action on the daily chart are bullish, supporting the continuation of the uptrend.
- There were concerns about potential selling pressure on SOL due to FTX’s holdings, but most of FTX’s SOL is still locked until 2028. Short term impact is possible but not as severe as some expected.
- Despite Bitcoin’s rally, long-term BTC holders are still holding and not selling. This suggests confidence in higher prices ahead possibly fueled by anticipation of a spot BTC ETF approval.
- SOL price has rallied over 73% in the past 30 days. Recent consolidation between $38-45 could resolve with a breakout above $45, potentially reaching $46.7 next. Below $38.3 could retest lower support around $35.7.
According to technical analysts, both the weekly Relative Strength Index (RSI) and the current daily price action align with a continuation of the uptrend. The RSI recently crossed above 50 into bullish territory and continues rising. Meanwhile, the SOL price action likely represents the third wave of a five-wave Elliott formation.
Notably, the third wave is often the longest and strongest part of this bullish pattern. Initial upside targets based on typical wave relationships sit around $68. SOL could reach this level in an extended wave three move without much consolidation beforehand. A daily close above $48 would confirm the upside breakout.
SOL did stall right at the $47 level last week, unable to sustain the breakout. This signals that the $47-$48 zone will be tough resistance to overcome. Support sits around $38 based on the recent trading range.
The FTX debacle had sparked concerns regarding heavy selling pressure on SOL, given FTX’s large holdings of roughly 4 million tokens. However, most of these holdings are locked until 2028, minimizing the risk of substantial near-term liquidations.
Meanwhile, SOL appears positioned to gain market share against other “Ethereum killers” like Cardano (ADA). SOL boasts significantly higher daily active users but still trades at a discounted valuation relative to ADA. This trend hints at upside for the SOL/ADA ratio.
Moreover, staking activity and developer participation within Solana’s ecosystem both continue trending upwards despite market volatility. This reflects genuine utility and demand that should eventually be reflected in SOL’s price. With bullish technical and fundamental factors aligned, traders remain optimistic on SOL retesting the $47 zone soon.
