Sol, the main currency of Solana, is considered one of the most powerful coins in the top 10, according to CoinMarketCap, a crypto tracker. According to data, on October 31st, SOL changed hands above $36 and is trending towards highs in 2023. This marks a significant turnaround from the FTX crash that caused the coin to drop to as low as $8 in the fourth quarter of 2023 before steadily recovering in the past 11 months.
Solana has surged by over 150% from its lows in November 2022 at current prices. At this pace, SOL is outperforming Bitcoin (BTC) and Ethereum (ETH), whose prices have also risen by over 100% since their lows in 2022.
On the daily chart, SOL is within a bullish breakout formation and is trending above the July 2023 high of around $32. It is worth noting that the increase in price is accompanied by rising trading volume, indicating that optimistic traders may be supporting the upward trend.
In addition to the increase in trading volume, bull bars are moving towards the upper Bollinger Bands (BB), which deviate from the middle BB, suggesting that the upward momentum is strong and could support prices. BB is a technical indicator used to measure price volatility. Whenever one of the bands deviates from the middle BB, the underlying volatility is high, as is the case with Solana at current prices.
The FTX bankruptcy triggered the fall of SOL in November 2022. The exchange was one of the most popular before it collapsed after it was revealed that its founder, Sam Bankman-Fried, had misappropriated user funds.
FTX held about 16% of the outstanding SOL supply, worth over $1 billion, and over $500 million in BTC through its subsidiaries. According to a ruling by the Bankruptcy Court for the District of Delaware in September, FTX can begin selling and investing its crypto holdings to repay creditors.
In mid-October, the FTX estate deployed 5.5 million SOL. According to on-chain data, the coins were staked through Figment, a platform mainly used by institutional investors.
By staking SOL, the FTX estate, managed by a trustee, is optimistic about the coin as it has the option to liquidate it at any time as ordered by the court. In addition, the estate receives more SOL through staking.
However, a report from Nansen on October 31st indicates that the FTX estate has released 1.6 million SOL. It is unclear whether they will be sent to exchanges for liquidation, which could potentially lead to a decrease in price.
Overall, Solana has made a remarkable recovery since the FTX crash and is currently outperforming other major cryptocurrencies. As it continues to gain momentum and attract bullish support, investors and traders are closely monitoring its price movements in anticipation of further growth.
