Sunday, August 14

Solana Price waits $ 300 as Grayscale launches SOL-backed trust


Solana (SOL) maintained its intraday gains on November 30 when Grayscale Investments, the world’s largest cryptocurrency fund, announced that it would add SOL to its product line.

A $ 300 SOL ahead?

SOL rallied to nearly $ 217.50 after rising more than 6.50% intraday. The Solana token’s gains came primarily as part of a recovery move that began on November 28, in which it rallied over 20% by testing a reliable multi-month ascending trend line as support (close to $ 190). , as shown in the graphic below.

SOL / USDT daily price chart with ascending trend line support. Source: TradingView

The latest round of buying near the trend line support also helped push SOL above the Fibonacci line of 23.6 (~ $ 204) of its Fibonacci retracement chart, pulled from the low of $ 23.22 to the high of $ 260.69. As a result, the $ 260 price level appears as the last line of defense between SOL and a new record.

“SOL, although it seems exhaustion, $ 300 is still possible, something is possible (this season),” he noted. @fomocapdao, an independent market analyst, adding:

“It depends on everything [ecosystem though], that is to say TVL, NFT, Tabasco, commercials of announcements “.

“Continued appetite” by Solana

Grayscale’s decision to add Solana to its portfolio of services promised to make SOL visible to more high-net-worth and institutional investors.

That is primarily due to Solana’s incredible growth as a blockchain project in 2021. Layer one protocol emerged as a rival to the Ethereum smart contract platform after providing users with one of the fastest and fastest public ledgers. lower cost.

Solana’s blockchain performance versus others. Source: Reddit

Solana’s ecosystem attracted more than 500 projects spread across decentralized finance (DeFi), non-fungible tokens (NFT), Web3, and other sectors, with 1.2 million active users on the network. Among them is Serum, a decentralized derivatives exchange backed by FTX and Alamada Research from billionaire Sam Bankman-Fried.

As a result, the price of SOL, which functions as a fee and participation token within the Solana ecosystem, increased by more than 10.700% year-over-year, with its circulating market capitalization peaking at about $ 77.93. billion in November.

SOL current market capitalization. Source: Messari

Now worth more than $ 70 billion, Solana remains the fourth-largest blockchain by market capitalization, and Grayscale CEO Michael Sonnenshein noted that there is already a “continued appetite” among investors to win. exposure in the blockchain project.

Related: Okcoin Reports Altcoins Driven Institutional Interest In Cryptocurrencies By 2021

The remarks came after Coinshares, a London-based asset management company, reported Net capital inflows of more than $ 250 million in SOL-based exchange-traded products (ETPs). This month alone, Solana’s ETPs attracted around $ 42.2 million, Coinshares underlined in its Nov. 29 report.

Despite calls for SOL to hit $ 300 below, the token still faces downside risks due to some general issues, including excessive valuations on longer-term charts and potential for network outages.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.