Solana’s price has surged 40% this week, reaching a new high for 2023 at around $58. This is the best weekly performance for Solana since January 2023.
Several factors have contributed to the price increase, including the easing of FTX-dump fears and growing buzz around Bitcoin ETFs.
FTX has been selling SOL tokens daily for the past two weeks, but the impact has been limited due to vested or locked tokens and a weekly sale limit. This has transformed initial fears into investor enthusiasm.
Solana-focused funds have seen inflows of $10.80 million in the week ending November 3, indicating institutional interest in the SOL market.
The overall uptrend in cryptocurrency prices, driven by Bitcoin’s rise and Bitcoin ETF euphoria, has also contributed to Solana’s performance.
Solana’s futures open interest has reached a significant level, indicating greater interest and liquidity in the market.
The rising open interest is accompanied by increasing funding rates, suggesting a higher appetite for leveraged longs among investors.
From a technical standpoint, Solana’s price has broken above a horizontal trendline resistance, indicating a bullish breakout. The upside target for SOL price before the end of the year is around $90.
However, the weekly relative strength indicator (RSI) is at its most overbought level since September 2021, suggesting a potential correction.
In summary:
– Solana’s price has surged 40% this week to reach a new high for 2023.
– Factors contributing to the gains include easing FTX-dump fears and growing Bitcoin ETF buzz.
– Solana-focused funds have seen inflows of $10.80 million.
– Solana’s futures open interest has reached a significant level, indicating greater interest and liquidity.
– The rising open interest is accompanied by increasing funding rates, suggesting a higher appetite for leveraged longs.
– From a technical standpoint, Solana’s price has broken above a horizontal trendline resistance, with an upside target of $90.
– However, the weekly RSI is at its most overbought level since September 2021, suggesting a potential correction.
