Solana’s last 72 hours and what to expect going forward

Of all the present altcoins out there, Solana has been the most well liked asset for over 3 months now. Rising by greater than 764.12%, SOL had been pushing increased, earlier than consolidating for many of this month.

Nonetheless, the final 72 hours got here as a blessing and pulled the altcoin out of its distress. It recovered all of the losses it endured over the past 2 months, all in 3 days. 

Solana does wonders

On 20 October, Solana started its upward motion, and within the days that adopted, it went up by 29.78%.

This W-shaped restoration led the coin to breach its long-standing vital resistance of $200. Within the course of, it additionally hit a brand new all-time excessive. Consequently, the altcoin’s market cap shot up from $46 billion to $62 billion.

Solana worth restoration | Supply: TradingView – AMBCrypto

Nonetheless, this wasn’t some random hike. The push got here from the a number of occasions that transpired between 19 and 20 October –

1. Deposit and withdrawal for USDT and USDC through Solana have been enabled on the cryptocurrency change platform OKEx
2. Inter-operability protocol Wormhole added assist for Terra, enabling the switch of UST and LUNA throughout the chains together with Ethereum and Binance Good Chain
3. Solana’s lately launched Staking protocol Marinade Finance crossed the $1B mark in lower than 2 months

Naturally, buyers, with out making heads or tails of the scenario, jumped into Solana primarily based on the bullishness alone. And that caused this rally.

Buyers on a excessive

Buying and selling volumes on 21 October have been at a month-to-month excessive, hitting $3.4 billion in a single day. On high of that, about 100k SOL was purchased in simply 5 minutes, on the time of writing. What’s extra, over 6 million SOLs ($1.2 billion) have been purchased and offered on 21 October.

Solana purchase/promote volumes | Supply: Coinalyze – AMBCrypto

Nonetheless, surprisingly, there appeared to be extra bullishness within the leveraged buying and selling market than spot. Volumes crossed $10 billion, and greater than $16 million price of lengthy and brief contracts have been liquidated in a single day. 

The bullishness is carrying over to at present too since shorts contracts price $4 million are taking priority over longs.

Solana derivatives volumes | Supply: Coinalyze – AMBCrypto

And, for individuals who have been ready for a however, there doesn’t appear to be a warning signal right here. At press time, there have been no indications of a worth fall but since volatility has been very low. Lastly, the common consumer sentiment can also be strongly optimistic proper now.

Solana Volatility | Supply: Messari – AMBCrypto

So, for these of you who wish to spend money on SOL, that is your time. Nonetheless, watch the value for a correction in direction of $200. If the candle closes above it, confidently enter the market. If it doesn’t, stay cautious.