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The day is not over for cryptocurrency investors, and despite the late hours, they are still watching price charts. While the BTC price is racing to new 17-month highs, SOL Coin price is in the midst of an impressive rally. The increase in price may not be over yet. So, what was the reason behind the price surge? Did investors miss the opportunity to buy SOL Coin?
Why is Solana (SOL) Rising?
Although the rise seems to have paused for now, the SOL Coin price reached its highest point in 14 months within 24 hours. The days when it dropped to $8 feel like just yesterday. After Vitalik Buterin’s tweet stating that it has “freed itself from the money bosses,” the price recovered and surpassed $40 again. This price level is psychologically important because FTX was lingering around this region before the crash. This means that the losses from the crash are being compensated.
So, why did the price increase? The problem is that not everything goes as expected in cryptocurrencies. Logic would suggest that after FTX transferred millions of SOL to crypto exchanges in the past few days, the price would decrease. You would even expect the recent $65 million SOL Coin transfer to trigger significant losses. However, things can work the opposite way in speculative markets.
Accumulated short positions were liquidated by speculators. Instead of decreasing, SOL Coin price reached new highs.
SOL Coin Analysis
Solana represents a resurrection as one of the best-performing assets. Its price has increased by more than 3.5 times this year and officially declared that it will not disappear after the FTX crash. With Google Cloud partnership and developer incentive programs, the ecosystem continues its efforts to strengthen itself for the bull run.
On the other hand, we have been paying attention to the SOL Coin inflows in CoinShares reports for weeks. Those who follow know that we have been talking about regular inflows of more than $10 million into SOL Coin funds for almost a month. This was one of the biggest bullish signals.
At the time of writing, the SOL Coin price is at $43. If it can close above $40.8, it may test $48 again. This resistance area was last tested in August 2022. If the recovery begins, a new peak between $55 and $88 can be expected. However, if it falls below $33.4, it may open the door to tests at $28 and $20 in the medium term.
