Solana (SOL), considered to be Ethereum’s strongest Layer-1 competitor, has continued its mega rally and reached $55 today, with a 17% increase, making it the top-performing altcoin. It has seen a weekly gain of 35% and a surprising monthly gain of over 150%. After reaching its all-time high of $260 on November 7, 2021, SOL plummeted to $8 in December 2022 following FTX’s bankruptcy, but has since increased by approximately 7 times.
Should Investors Buy SOL Now?
Solana has tripled in price since September and surpassed the critical $53 resistance level, reaching $55 today. This has led some investors to believe that Solana can achieve even greater gains. However, some analysts recommend a cautious approach regarding whether Solana’s price rally will continue.
Cryptocurrency analyst JACKIS warned investors that the current rise of SOL could be a trap and advised against buying without a significant correction. JACKIS stated that although they are a strong long-term supporter of Solana, immediate investment in SOL should be avoided after a series of ten consecutive weekly green candles. Despite the significant rise, data shows that Solana is not yet in the danger zone, despite high funding rates.
The price increase in Solana demonstrates its increasing acceptance as an independent asset. However, despite the rise in funding rates, it is emphasized that Solana is still not in the danger zone. Experts advise investors to adopt a cautious approach, expecting a potential market correction, and to be careful of 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. This indicates significant institutional interest in Solana.
