Solana (SOL) has grown over 10,000% since early September, hitting an all-time high (ATH) of $ 213.47.
SOL’s move from under $ 2 to its current sixth place by market cap has been impressive. But as September ends and SOL tends to turn bearish, it casts doubt on its continued growth.
Price Correction – A Speed Break Factor?
Consolidation took place after dealers dubbed Solana’s August-September rally “Solana Summer” as the price of SOL broke the $ 200 mark. The merger came as a shock to the SOL independence rally. Even so, the price made an almost parabolic rebound on the daily chart at press time.
SOL .Price Chart | Source: Tradingview
In fact, SOL’s surge of nearly 18 percent in October shook price projections again. It does so when Grayscale added Solana to its large-cap crypto fund on Friday (October 1st). The company announced that its $ 494 million digital large cap fund had closed, with SOL accounting for 3.24%. This is the first time SOL has been included in Grayscale’s investment vehicle. The previous effects of the same move were noted in the price histories of top altcoins like Cardano.
With Solana price up 7% daily and 24.4% weekly at the time of going to press, it looks like the consolidation and subsequent drop in prices were just a pace break. However, with SOL currently trading near $ 168, market participants fear missing out on the entry point.
Signs of a bull cycle
After the SOL consolidated, the community was skeptical of its development, but the market-wide rebound and Grayscale announcement caused the price to rise again. So is the failure a “buy the dip” opportunity and how will SOL perform in the near future?
Solana has experienced high social expectations in anticipation of ATH in recent months. While macro events ranging from the Chinese crypto ban to the SOL network crash and dwindling transaction volumes helped plunge SOL into a swamp, NFT mania fueled it. Recently, SolanaMonkeyBusiness’ s NFT, a collection of 5,000 NFTs minted on the Solana blockchain, sold an NFT for 13,027 SOL.
Notably, SOL’s social volume is low, which is a good sign before the price hike. In addition, the Solana futures market with a total open interest (OI) of 939.87 million
Solana’s OI is increasing | Source: Coinalyze
Additionally, coupled with the price hike over the past 24 hours, at press time, SOL had liquidated nearly $ 12.6 million in short positions. Hence, it looks like the market for SOL is starting to rally again.
In addition, Solana is also introducing Soldex, a third generation exchange and one of the first decentralized exchanges (DEX) based on Solana. These external developments, when the SOL is only 20% off the ATH, is a good sign of its growth and could trigger a rally if the broader market continues.
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According to AMBCrypto