The Impressive Rally of SOL Coin: Understanding the Surge
The cryptocurrency market is buzzing with activity, even during the late hours, as investors closely monitor price charts. While Bitcoin (BTC) is reaching new 17-month highs, SOL Coin is in the midst of an impressive rally, leaving investors curious about the driving factors behind this surge.
Reasons Behind Solana (SOL) Rising
Despite a temporary pause in the rally, SOL Coin achieved its highest point in 14 months within a 24-hour period. Just days ago, it seemed like a distant memory when its price dropped to $8. The recent boost came after Vitalik Buterin’s tweet, stating that it has “freed itself from the money bosses.” This led to a swift recovery, pushing the price beyond $40 once again.
This price level holds psychological significance because FTX was hovering around this region before the crash, indicating that the losses from the crash are being compensated.
Interestingly, despite the expectations of a price decrease after FTX transferred millions of SOL to crypto exchanges and a recent $65 million SOL Coin transfer, the market worked in the opposite way. Speculators liquidated accumulated short positions, propelling SOL Coin to new highs.
SOL Coin Analysis
Solana has emerged as one of the best-performing assets, with its price surging by more than 3.5 times this year. It has solidified its position after the FTX crash and continues to strengthen itself for the bull run through partnerships with Google Cloud and developer incentive programs.
Additionally, regular inflows of more than $10 million into SOL Coin funds have been noted in CoinShares reports for weeks. This consistent inflow serves as a significant bullish signal, indicating the confidence of investors in SOL Coin’s potential.
As of the latest update, the SOL Coin price stands at $43. If it can close above $40.8, it may test $48 once again, a resistance area last observed in August 2022. In the event of a sustained recovery, a new peak between $55 and $88 can be anticipated. However, a fall below $33.4 may open the door to tests at $28 and $20 in the medium term.