- Solana’s SOL price has surged past $65, gaining 15% and extending its monthly rise to nearly 200%, with eyes on the $100 target.
- Institutional backing, including positive remarks from Cathie Wood and a massive influx of money into the Grayscale Solana Trust, propels this growth.
Institutional Backing Fuels Solana’s Price Surge
Solana, a major competitor of Ethereum, is witnessing a remarkable price rally, with its SOL cryptocurrency soaring past the $65 mark. This surge, marking a 15% increase, has catapulted Solana’s monthly gains to an impressive 200%. The asset is now the sixth-largest cryptocurrency by market capitalization, surpassing Circle’s USDC stablecoin.
The Grayscale Solana Trust and Cathie Wood’s Endorsement
A significant factor in this price rally is the strong institutional support Solana has received. Notably, the Grayscale Solana Trust experienced a massive influx of institutional funds, with the GSOL share price reaching over $200 last week. At one point, GSOL shares traded at a 300% premium over the spot price of Solana, although this has since adjusted to a 100% premium.
Adding to the institutional confidence is the endorsement from Ark Invest’s Cathie Wood. In an interview with CNBC’s Squawk Box, Wood praised Solana‘s performance, highlighting its speed and cost-effectiveness compared to Ethereum. Despite acknowledging Solana’s downtime issues, Wood’s comments underscore a growing institutional preference for Solana’s capabilities.
Solana’s DeFi Activity and Price Prediction
Solana’s DeFi sector is showing strong activity, with the total value locked (TVL) in the protocol surging by $233 million since October, reaching $557 million. The rise in active addresses, recording 130,554 in the last 24 hours, further illustrates the growing interest in Solana’s DeFi offerings.
Looking forward, technical analysis suggests that Solana’s immediate price target is $70, with a potential to hit $100. This optimistic outlook is supported by two golden crosses on the chart, where the 50-day Exponential Moving Average (EMA) crosses above both the 100-day and 200-day EMAs. These indicators often signal a strong bullish trend.
Maintaining the Bullish Trajectory
However, it’s crucial to note that the bullish sentiment around Solana’s price would be at risk if it falls below the crucial support level of $60. The balance between Solana‘s technological capabilities, institutional backing, and market dynamics will be key factors in determining whether it can maintain its current trajectory and reach new heights.
