Of all the existing altcoins in the market, Solana has been the hottest asset for over 3 months now. Rising by more than 764.12%, SOL had been pushing higher, before consolidating for most of this month.
However, the last 72 hours came as a blessing and pulled the altcoin out of its misery. It recovered all the losses it endured over the last 2 months, all in 3 days.
Solana does wonders
On 20 October, Solana began its upward movement, and in the days that followed, it went up by 29.78%.
This W-shaped recovery led the coin to breach its long-standing critical resistance of $200. In the process, it also hit a new all-time high. Consequently, the altcoin’s market cap shot up from $46 billion to $62 billion.
However, this wasn’t some random hike. The push came from the multiple events that transpired between 19 and 20 October –
- Deposit and withdrawal for USDT and USDC via Solana were enabled on the cryptocurrency exchange platform OKEx
- Inter-operability protocol Wormhole added support for Terra, enabling the transfer of UST and LUNA across the chains including Ethereum and Binance Smart Chain
- Solana’s recently launched Staking protocol Marinade Finance crossed the $1B mark in less than 2 months
Naturally, investors, without making heads or tails of the situation, jumped into Solana based on the bullishness alone. And that brought about this rally.
Investors on a high
Trading volumes on 21 October were at a monthly high, hitting $3.4 billion in a single day. On top of that, about 100k SOL was bought in just 5 mins, at the time of writing. What’s more, over 6 million SOLs ($1.2 billion) were bought and sold on 21 October.
However, surprisingly, there seemed to be more bullishness in the leveraged trading market than spot. Volumes crossed $10 billion, and more than $16 million worth of long and short contracts were liquidated in a single day.
The bullishness is carrying over to today too since shorts contracts worth $4 million are taking precedence over longs.
And, for those who were waiting for a but, there doesn’t seem to be a warning sign here. At press time, there were no indications of a price fall yet since volatility has been very low. Finally, the average user sentiment is also strongly positive right now.
So, for those of you who want to invest in SOL, this is your time. However, watch the price for a correction towards $200. If the candle closes above it, confidently enter the market. If it doesn’t, remain cautious.
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