Solana continues on its unstoppable price rally gaining an additional 15% and moving past $65 on Wednesday, November 15. With this Solana has extended its monthly gains to nearly 200% while eyeing its next potential big target of $100.
With yesterday’s gains, Solana is now the sixth-largest cryptocurrency by market cap unsettling Circle’s USDC stablecoin.
Solana Receives Institutional Backing
The Ethereum competitor Solana has received strong institutional backing which is also one of the reasons behind this mammoth SOL price rally. The Grayscale Solana Trust witnessed a massive influx of institutional money with the GSOL share price shooting past $200 last week.
At one point, the GSOL share was trading at a staggering 300% premium to the spot Solana price. However, the discount has now been reduced to 100% premium, this week.
On the other hand, Ark Invest’s Cathie Wood showered major praises on Solana. During her interview with CNBC’s Squawk Box, Cathie Wood said:
“Solana is doing a really good job. Ether was faster and cheaper than Bitcoin [back] in the day — that’s how we got Ether. Solana is even faster and [more] cost-effective than Ether”.
Wood expressed her positive sentiment toward Solana, highlighting her affinity for the altcoin. She acknowledged that Solana’s downtime, referring to periods of network maintenance or outages, is noticeably higher compared to Ethereum.
“People are willing to put up with that because maybe the transaction sizes are not as large or for some reason are not as important, they just want speed and cost as their top priority. Each one of [the networks] is going to have a place,” she added.
SOL Price to $100?
The massive SOL price rally also comes as the Solana blockchain has been showing strong DeFi activity. Since the start of October, the total value locked (TVL) in the protocol has surged by an impressive $233 million, reaching $557 million. Additionally, active addresses in the Solana DeFi sector have seen a rise, recording 130,554 in the last 24 hours.
As Solana shows strength on the technical charts, the next immediate SOL price target stands at $70 and later at $100. This optimistic perspective would be supported by the occurrence of two golden crosses, signifying instances when the 50-day Exponential Moving Average (EMA) (red) crossed above both the 100-day EMA (blue) and the 200-day EMA (purple).
However, the bullish sentiment would not longer prevail if the Solana price tanks under its crucial support at $60.
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