Solana’s Impressive Rally
Solana (SOL), often regarded as Ethereum’s strongest Layer-1 competitor, continues its impressive rally, hitting $55 today, marking a 17% increase and solidifying its position as the top-performing altcoin. With a weekly gain of 35% and a surprising monthly gain exceeding 150%, SOL has made significant strides.
After reaching an all-time high of $260 on November 7, 2021, SOL experienced a drastic drop to $8 in December 2022 following FTX’s bankruptcy. However, it has since rebounded, increasing by approximately 7 times.
Is It Time to Buy SOL?
SOL has tripled in price since September, surpassing the critical $53 resistance level and reaching $55 today. While some investors anticipate further gains, analysts caution against hasty decisions.
Cryptocurrency analyst JACKIS warned investors that the current rise of SOL could be a trap and advised against buying without a significant correction. Despite being a long-term supporter of Solana, JACKIS suggests refraining from immediate investment after a series of ten consecutive weekly green candles.
Despite the significant rise, data shows that Solana is not yet in the danger zone, as evidenced by manageable funding rates. Experts advise investors to exercise caution, anticipating a potential market correction, and to remain vigilant against sudden price surges.
High Institutional Interest in Solana
Grayscale Solana Trust (GSOL) is currently trading at a 300% premium, four times the spot price, similar to Chainlink (LINK). GSOL shares are currently trading at $202, while Solana’s spot price is around $55.
On November 10, GSOL’s share price surpassed $200 with a 61% increase. GSOL’s share price has increased by over 800% since the beginning of the year, indicating substantial institutional interest in Solana.