Investing.com – The is by far the best performing top 10 cryptocurrency this Saturday, soaring 17% over 24 hours and more than 33% over a week at the time of writing.
The is displayed at around $54.5, after a peak at $57.68 during the night from Friday to Saturday, the highest since May 2022. Thus, the Solana now displays a gain of more than 46% since the start of the month of November.
Since the start of the current bullish wave, which started around October 15, the SOL has shown a gain of 155%.
Why is Solana soaring and outperforming other cryptocurrencies?
Regarding the reasons for this sharp increase, no clear catalyst can be identified, but it should be noted that it comes following the annual Solana conference, which was the occasion for many encouraging announcements for the future. of the network.
It is also interesting to note that this sudden rally comes despite market concern regarding possible sales by FTX Group, one of the main holders of the SOL token. The bankrupt crypto platform has sent mixed messages about what it plans to do with its massive stake.
However, it turns out that some of the SOL tokens resulting from the bankruptcy proceedings are either vested or blocked. Additionally, FTX’s liquidation plan imposes a weekly sales limit of $100 million.
It should be remembered that Solana was one of the cryptocurrencies most affected by the FTX bankruptcy scandal, given the latter’s massive positions on SOL. The crypto had in fact gone from a record of $260 in November 2021 to a low of $8 in November 2022.
In other words, investors probably realize that the punishment imposed on Solana in the face of FTX’s bankruptcy was exaggerated, which at least partly justifies its outperformance in the context of the crypto bull market that we observed in recent weeks.
On another note, Solana’s total value locked (TVL), which measures the amount deposited in its smart contracts, reversed its downward trend after six consecutive weeks. It currently reached 538.64 million dollars on Friday, compared to 409.68 million at the beginning of the month.
SOL/USD could correct after impressive rally
From a graphical point of view, we note that the extent of the increase calls for a correction. However, as long as Solana maintains the major psychological threshold of $50, we can consider that the bias remains bullish.
Below $50, the November 1 high around $46 will be the next threshold to watch, before the $38-40 zone.
On the upside, the recent high near $58 combines with the psychological threshold of $60 to form immediate resistance for Solana.