Ethereum Layer-1 competitor Solana has been a star performer among altcoins by surging another 17% and reaching $55 in the mega rally. With this Solana has extended its weekly gains to 35% and monthly gains to a staggering 150%.
Should Investors Buy SOL Now?
Undoubtedly, there’s a lot of FOMO for buying into Solana as the SOL price has registered a 3x price rally since September. With today’s price rally to $55, the SOL price has shot past if 2021 resistance of $53. As a result, some investors believe that Solana could clock another 10-15% gains from here and rally to $61.
Continues to rally, higher and higher
Already tapped the 2021 resistance of $53
Can it rally to $61 soon?
And if so, would #SOL be able to sustain the highs?
— Rekt Capital (@rektcapital) November 10, 2023
However, the bigger question is whether the Solana price rally could sustain going ahead. Some analysts advise that investors should not burn their fingers by making any fresh entry as of now.
Popular crypto trader JACKIS noted: Investors are now pursuing $SOL during its upward movement at $54, neglecting the opportunity when it was at $17. The prevailing sentiment in the community is overwhelmingly positive, believing that Solana will revolutionize the world, which might be a potential retail trap.
While the speaker is a strong long-term supporter of SOL, they advise against chasing the asset during a streak of ten consecutive weekly green candles. Instead, they suggest waiting for a significant correction, possibly a big shake-out, and then entering the market during the subsequent weekly red candles.
Also, the on-chain data shows that the funding rate for Solana is high but still not in the danger zone. Solana has recently exceeded $54, marking its highest point since May 2022. Increased discussions about $SOL suggest growing acknowledgment from the mainstream audience regarding the asset’s independence from other assets. While funding rates are elevated, they haven’t reached a ‘danger zone’ as of now.
Grayscale Solana Trust
Similar to Chainlink, the Grayscale Solana Trust (GSOL) is trading at 4x or 300% premium to the spot price. The shares of GSOL are currently trading at $202 while the spot price is around $55.
On Friday, November 10, the GSOL share price shot by 61% shooting past the $200 level. The GSOL share price is now up by more than 800% since the beginning of the year. This highlights massive institutional participation in Solana.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.