Solana (SOL) suffered a huge setback when FTX exchange filed for bankruptcy, but it has since made an incredible comeback, outpacing both Bitcoin and Ethereum in year-to-date returns with 195%. Many cryptocurrency investors are still hesitant about Solana’s stability in the FTX proceedings, but there are very strong arguments to the contrary.
Of course, here is a revised version:
Is Solana’s Rise in 2024 Expected to Be More Promising Than Other Altcoins?
The exceptional outperformance of Solana’s price in comparison to other leading cryptocurrencies is one strong reason to pay special attention to it. SOL has increased dramatically from $9.97 to approximately $30 over the last ten months. While Chainlink’s 21% increase enthralled investors on October 21, it posted a 25% gain.
Solana’s price growth could be linked to a number of causes, including:
Contrarian Thought: As you indicated, contrarian thought has the potential to affect the market. When many investors avoid an asset because of worries or disputes, it can give others a chance to recognize potential value, which could trigger a rise.
Speculation is a major driver of cryptocurrency markets. Traders and investors might find lucrative opportunities in Solana, which would increase demand and prices.
Solana Market Attitude
Investor and cryptocurrency community attitudes can be quite influential. More buyers may get interested in a coin if there is enthusiasm for it.
Utility and Adoption: Interest and investment may also be sparked by Solana’s technology and its use in numerous decentralised apps (DApps).
Trends in the broader cryptocurrency market, such those in Bitcoin’s performance, can have an effect on altcoins like Solana.
It is crucial to think about the FTX lawsuit’s outcome and its long-term effects on Solana’s pricing. Investors frequently respond to news and current events, and the verdict in the litigation may have an effect on attitude and investing choices.
Remember that the price of a cryptocurrency can be affected by a wide range of variables, both fundamental and speculative, and that the market is quite volatile.
SOL Staking and Underlying Factors
FTX Estate decided to take a different strategy by staking $122 million in SOL and $5 million in ETH, dispelling worries that they would sell off assets from the struggling exchange. This tactical approach strengthens Solana’s fundamentals and, at least temporarily, reduces the likelihood of a big sell-off. This new development might help the SOL rally that is still going strong.
SOL to ETH Ratio: The SOL to ETH ratio has increased to 0.06, a level not seen in almost a year, despite the fact that Solana’s pricing is less favourable than Ethereum’s post-FTX meltdown. Solana’s price stability reflects a change in investor attitude, with more interest being shown in Solana and less interest being shown in Ethereum.
Investors from institutions choose SOL. James Butterfill, the head of research at CoinShares, stated in a study on October 9 that Solana has seen substantial inflows in 2022 and is quickly becoming the favourite altcoin. In conclusion, retail investors have mainly ignored Solana’s pricing. SOL is anticipated to do better than big cryptocurrencies like Bitcoin, Ethereum, Ripple, and others as long as this continues to be the case.
Investors should be ready for a modest drop to $25.86 or $24.43 in order for the rise to continue once Solana (SOL) price finally crosses the $25.86 barrier after nearly a year of struggling. It’s imperative that this level bounces back in order to launch a rally towards $69.79.
However, the bullish argument would be refuted and the price of Solana could likely revert to $17.92 if it drops below the crucial support level of $21.11.