Is the Solana rally coming to an end

Solana’s Surprising Bull Run and Skepticism

Solana (SOL) has recently experienced a rapid rise in value, emerging as one of the strongest performers in the market. In just under two months, SOL’s price rose by over 100%, leaving many investors wondering how long this rally could last.

FTX’s Role in the Surge

Analysts attribute several factors to SOL’s surge. In September, FTX, which held SOL in its portfolio, received court approval to start selling its assets. Contrary to expectations, FTX did not immediately begin selling, leading some traders to short SOL in anticipation of a significant sell-off. However, these shorts were caught off guard as SOL’s price continued to rise. Eventually, on October 24th, FTX began moving its assets, coinciding with good liquidity in the market due to rumors of a possible bitcoin ETF approval.

Many traders saw this as an opportunity to short SOL, further contributing to the rising price. The combination of these shorts and strong trading volumes created a risky situation for investors. Despite this, SOL’s price reached $46.80.

It’s worth noting that FTX still possesses a substantial amount of SOL, which will gradually become available over the next few years. FTX’s liquidators handle asset selling cautiously, ensuring they do so at the opportune moment. Additionally, some assets may be sold privately rather than on regular exchanges.

Positive Social Sentiment

Despite the concerns and skepticism surrounding SOL’s bull run, social sentiment for the coin remains high. Over the last week, there has been a significant increase in social volume related to Solana. Furthermore, sentiment analysis reveals a greater number of positive comments compared to negative ones.

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Price Fluctuations and Uncertainty

Despite these positive indicators, SOL’s price currently stands at $38.90, reflecting an 11.89% decrease over the past 24 hours. It remains to be seen whether this dip will continue and impact holders.

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By Team