Solana (SOL) maintained its daily gain on November 30 when Grayscale Investments, the world’s largest cryptocurrency fund, announced that it would add SOL to its product line.
$ 300 in the future?
SOL climbed to nearly $ 217.50 after gaining more than 6.50% on the day. Solana’s gains came mainly as part of the November 28 recovery movement, returning over 20% by testing a reliable multi-month bullish trendline as support (around $ 190) as shown in the chart below.
The daily chart of the SOL / USDT price is marked by support from the uptrend line. Source: TradingView
The recent buy-in near the trendline support also helped propel SOL above the Fibonacci line of $ 23.6 (~ $ 204) on the Fibonacci retracement chart, stretching from its lowest of $ 23.22 to a high of $ 260.69. As a result, the $ 260 price level seems to be the last line of defense between SOL and the new record.
fomocapdao, an independent market analyst, commented, “While SOL looks like a drain, there is another $ 300 that could happen (this season),” adding:
“It depends on the whole [ecosystem], which means TVL advertising, NFT, tabasco, advertising advertising.”
Solana’s Continuous Appetite
Grayscale’s decision to add Solana to its portfolio of services promised to make SOL visible to wealthier institutional investors.
This is mainly due to the impressive growth of Solana as a blockchain project in 2021. The Layer 1 protocol has become a competitor to its second smart contract platform, Ethereum, providing users with one of the cheapest and fastest public ledgers.
Solana blockchain performance compared to others. Source: Reddit
The Solana ecosystem has attracted over 500 projects related to Decentralized Finance (DeFi), Non-Perishable Tokens (NFT), Web 3.0 and other sectors, with 1.2 million active users online. Among them is Serum, a decentralized derivatives exchange backed by billionaire Sam Bankman-Fried FTX and Alamada Research.
As a result, the price of SOL, which acts like a draw and a bet in the Solana ecosystem, is growing more than 10.70% year after year, and its market value peaked close to $ 77.93 billion in November.
Market value of SOL trades. Source: messari
Solana is now valued at more than $ 70 billion and is still the fourth largest blockchain chain by market value, with Grayscale CEO Michael Sonninchin noting that investors already have a “constant appetite” for participating in the blockchain project.
On the subject: Okcoin reports that altcoins have sparked institutional interest in cryptocurrencies for 2021.
The data comes after London-based asset manager Coinshares reported over $ 250 million in net capital injection into SOL-based exchange traded products (ETPs). ETP Solana raised about $ 42.2 million this month alone, Coinshares confirmed in its November 29 report.
Despite calls for SOL to reach $ 300 thereafter, the currency still faces downside risks due to some common concerns, including overvalued long-term charts and the possibility of network disruptions.