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Solana (SOL) Price Erases FTX Losses and Reaches New Yearly High – Can it Hit $40?

3 mins
Updated by Ryan James
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In Brief

  • The Solana (SOL) price has reached a new yearly high of $32.81, retracing the entire decrease from the FTX crash in November 2022.
  • Trading volume for Solana hit $1.7 billion, the highest in three months, with Total Value Locked at a new yearly high of $367 million.
  • Despite this bullish Solana price prediction, a weekly close below $28 can invalidate the breakout and then lead to a sharp decrease.
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The Solana (SOL) price increased rapidly in October and reached a new yearly high of $32.81 today.

The price of Solana also broke out from a horizontal resistance at $28, while the Relative Strength Index (RSI) reached its highest value since November 2021.

Solana Retraces Entire FTX Decrease

In November 2022, the SOL price fell from a high of $31.72 to a low of $12.34 in two days. The decrease occurred as a result of the FTX exchange going bankrupt.

Today, cryptocurrency trader Joe McCann noted that the SOL price has retraced the entire drop.

This comes on the heels of trading volume hitting $1.7 billion, the highest value in more than three months.

Finally, the Total Value Locked (TVL) for the Solana blockchain is at $367 million, which is a new yearly high. This is still only 3% of the all-time high of 10 billion from November 2021.

What Are the Analysts Saying?

Cryptocurrency traders on X are predominantly bullish since the price has broken out from its main resistance area. 

Pentosh1 believes that SOL will head towards at least $37 as soon as it breaks out above the midrange of $32.

SOL Price Movement
SOL/USDT Daily Chart. Source: X

SatoshiWolf has a similar target, but due to the numerous resistances at $37, he believes that the area represents an ideal spot to take profits.

Solana Price Prediction: How Long Will Increase Continue?

The weekly time frame chart for SOL is decisively bullish.

It shows that the price has finally closed above the $28 horizontal resistance area. This is the highest close since before the FTX crash (red icon). The close led to the Solana price yearly high of $32.81.

Also, the weekly Relative Strength Index (RSI) supports the continuing of the increase.

Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.

The indicator is moving upwards and shows a reading of 65, the highest since November 2021.

If the increase continues, the closest resistance area in this timeframe will be at $46, 45% above the current price.

SOL Price Prediction
SOL/USDT Weekly Chart. Source: TradingView

Despite this bullish SOL price prediction, a weekly close below the $28 horizontal resistance area will invalidate the breakout.

In that case, a nearly 40% drop to a long-term ascending support line at $20 could occur.

For BeInCryptos latest crypto market analysis, click here

Top crypto platforms in the US | February 2024

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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