Solana’s price has surged 40% this week, reaching a new high for 2023 at around $58. This is the largest weekly gain for Solana since January 2023. The increase in price can be attributed to several factors, including the easing of FTX-dump fears and growing excitement around Bitcoin ETFs.
Despite concerns about FTX selling large amounts of SOL tokens on a daily basis, the impact of these sales has been limited due to some tokens being locked or vested, as well as a weekly sale limit of $100 million. This has transformed initial fears into investor enthusiasm.
Bitcoin ETF euphoria has also contributed to the overall uptrend in cryptocurrency prices, with Solana being the best-performing coin in the past 30 days.
Solana’s futures open interest has reached a significant level of around $772 million, indicating greater interest and liquidity in the market. Additionally, the rising funding rates suggest strong bullish sentiment among investors.
From a technical standpoint, Solana’s price has broken above a horizontal trendline resistance, indicating a bullish breakout. If the ascending triangle bottom reversal plays out, the upside target for SOL price by the end of the year is around $90, a 50% increase from current levels.
However, it’s important to note that the weekly relative strength indicator (RSI) is at its most overbought level since September 2021, suggesting a potential correction in the near future.
In summary:
– Solana’s price has surged 40% this week, reaching a new high for 2023.
– Factors contributing to the gains include easing FTX-dump fears and growing Bitcoin ETF buzz.
– The impact of FTX token sales has been limited, leading to investor enthusiasm.
– Bitcoin ETF euphoria has driven the overall uptrend in cryptocurrency prices.
– Solana’s futures open interest and funding rates indicate strong bullish sentiment.
– From a technical standpoint, Solana’s price has broken out and has an upside target of $90.
– However, the RSI suggests a potential correction in the near future.