Solana has emerged as the strongest altcoin in the past few days. Solana price outperformed Bitcoin by 2.43% on a choppy day for the cryptocurrencies. This positive price action came on a day when Ethereum was on track to making a fresh 52 weeks against Bitcoin.
While the SOL price is up 38% from its September lows, it is still trading 25% below its yearly highs. The bullish market structure points toward a strong demand for the native asset of the Solana ecosystem. On Thursday, the SOL to USD pair gained 2.99%, reversing the 2.13% loss in its previous trading day.
FTX Estate Stakes 5.5 Million SOL
In a major development for the smart contract cryptocurrency, FTX estate staked 5.5 million SOL coins last week. The coins worth $122 million were staked with a validator known as Figment on the Solana blockchain.
This is a very interesting move, as after the collapse of the FTX and the subsequent bankruptcy, the exchange’s funds are being managed by a bankruptcy trustee. It comes at a time when the FTX exchange has just recently collected the claims from the now defunct trading platform’s users.
In other Solana news, the layer 1 blockchain recently became the ecosystem partner of the Dubai Multi Commodities Centre which is a free zone in the United Arab Emirates.
SOL/BTC Prepares For A Breakout
The recent uptrend in the Solana price can be attributed to the strength in the SOL/BTC pair. After a pullback in the first half of October, the pair is now up 6.5% from the monthly lows. The 0.00087 level remains the biggest resistance for the bulls, which can be retested in the coming days.
While there has been a steady increase in the total locked value (TVL) on Solana, it still remains far behind other notable blockchains. Currently, a total locked value of $36 billion is spread across different blockchains. However, Solana’s share in this figure is only 0.91%. This is evidence of low user adoption which in turn affects the SOL price.
Solana Price Outlook
Technical analysis of the following chart reveals that the SOL crypto is still maintaining the local uptrend, which started after a strong rebound from the September lows. A clear break of the equal high above $24.81 will make Solana price prediction very bullish.
The supply zone, which lies above the $25.9 level, may act as a resistance, but the main bullish target remains the buyside liquidity which lies above the $29 level. Such a move is only likely if the Bitcoin price also gains strength and breaks out above the resistance level of $30,000.
Source: https://www.analyticsinsight.net/solana-price-prediction-as-sol-price-outperforms-bitcoin/