OCTA Levels, BTC FOMO & Nation-State Panic
Solana (SOL) surged another 18% to hit a new yearly all-time high of $63.98 on Nov. 11 to cap off an impressive 40% rally this week.
The token has since retraced some of the gains and is trading at $59.34 as of press time, according to CryptoSlate data.
The past seven days mark the best weekly performance for Solana since January 2023. The rally is driven primarily by excitement over BlackRock’s ETF filings and the easing of fears around FTX’s SOL holdings.
FTX-dump fears ease
The FTX bankruptcy estate has been selling off 250,000 to 750,000 SOL tokens over the last two weeks. The estate had secured court approval to conduct a sale of 55.75 million SOL tokens in September 2023.
However, despite initial fears, the sales have had a limited impact on price action due to vesting and lock-up mechanisms, coupled with a weekly sale limit of $100 million. The concerns are shifting into investor enthusiasm as the market continues its streak of green.
Solana-focused funds, which serve as a barometer for institutional flows in the SOL market, witnessed inflows totaling $10.80 million in the week ending Nov. 3, according to CoinShares.
Meanwhile, asset management giant VanEck said in a recent research report that SOL could grow 10,000% in value if it can manage to onboard 100 million users..
ETF euphoria
Meanwhile, the excitement around Bitcoin and Ethereum ETFs filed by BlackRock, among other financial giants, has played a pivotal role in the overall uptrend of cryptocurrency prices — particularly driven by the flagship crypto’s surge above $37,000.
Despite the news being focused on the two largest cryptos in the industry, market optimism is pushing altcoins to pump as investors begin shifting profits from Bitcoin gains into small-cap tokens.
Solana has been one of the best-performing digital assets in the past 30 days, showcasing its resilience and attractiveness to investors.
Solana’s futures open interest reached a substantial level of around $772 million on Nov. 11, the highest since 2021, when SOL set its record high of $260. High open interest levels indicate increased interest and potential liquidity in the market.
Market sentiment toward SOL remains strongly bullish. However, the weekly relative strength indicator (RSI) is at its most overbought level since September 2021, which raises the possibility of a correction.
