Solana (SOL) surpassed the $65 level with an additional 15% increase on November 15th, continuing its unstoppable price rally. After dropping to $8 at the end of 2022 following the bankruptcy of FTX, SOL has made a significant comeback with over 700% gains since then. Market observers and analysts believe that this popular altcoin, which has seen a monthly gain of around 200%, is heading towards $100.
Strong Institutional Support for Solana
Solana, considered to be the strongest competitor of Ethereum (ETH), is attributed to its strong institutional support as one of the reasons behind its powerful rally. Grayscale Solana Trust (GSOL) witnessed a significant influx of institutional money last week as its price crossed $200. At one point, GSOL shares were trading at a surprising premium of 300% compared to the spot Solana price. However, this premium has now decreased to 100%.
Meanwhile, Cathie Wood from Ark Invest praised Solana, stating, “Solana is doing really well. It was faster and cheaper than Ethereum at the time, and that’s how we got into ETH. Solana is even faster and more cost-effective than ETH.” Wood expressed her positive sentiments towards Solana and emphasized her interest in the altcoin. She acknowledged that Solana’s downtime is significantly higher compared to Ethereum but mentioned that people are willing to tolerate it because transaction sizes may not be as large or as important. Speed and cost are their top priorities.
Is $100 Next for SOL?
SOL’s significant price rally occurred during a period when the Solana Blockchain demonstrated its strength in decentralized finance (DeFi). Since the beginning of October, the total value locked (TVL) in the protocol has increased from $233 million to an impressive $557 million. Additionally, Solana’s active wallet addresses in the DeFi sector have also experienced a significant increase, reaching 130,554.
The strength of the price chart indicates that the next targets for SOL are $70 and then $100. This optimistic outlook will be supported by the occurrence of two Golden Crosses, where the 50-day Exponential Moving Average (EMA) (red) crosses above both the 100-day EMA (blue) and the 200-day EMA (purple). However, if the price of SOL falls below the $60 support, the continuation of the upward trend will no longer be possible.
