SOL Price At $55 Amid Institutional Inflows in GSOL, Should You Buy Solana Now?

Bhushan Akolkar
November 11, 2023
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5 Reasons Why Solana (SOL) Price Skyrocketing Daily

Ethereum Layer-1 competitor Solana has been a star performer among altcoins by surging another 17% and reaching $55 in the mega rally. With this Solana has extended its weekly gains to 35% and monthly gains to a staggering 150%.

Should Investors Buy SOL Now?

Undoubtedly, there’s a lot of FOMO for buying into Solana as the SOL price has registered a 3x price rally since September. With today’s price rally to $55, the SOL price has shot past if 2021 resistance of $53. As a result, some investors believe that Solana could clock another 10-15% gains from here and rally to $61.

However, the bigger question is whether the Solana price rally could sustain going ahead. Some analysts advise that investors should not burn their fingers by making any fresh entry as of now.

Popular crypto trader JACKIS noted: Investors are now pursuing $SOL during its upward movement at $54, neglecting the opportunity when it was at $17. The prevailing sentiment in the community is overwhelmingly positive, believing that Solana will revolutionize the world, which might be a potential retail trap.

While the speaker is a strong long-term supporter of SOL, they advise against chasing the asset during a streak of ten consecutive weekly green candles. Instead, they suggest waiting for a significant correction, possibly a big shake-out, and then entering the market during the subsequent weekly red candles.

Also, the on-chain data shows that the funding rate for Solana is high but still not in the danger zone. Solana has recently exceeded $54, marking its highest point since May 2022. Increased discussions about $SOL suggest growing acknowledgment from the mainstream audience regarding the asset’s independence from other assets. While funding rates are elevated, they haven’t reached a ‘danger zone’ as of now.

Courtesy: Santiment

Grayscale Solana Trust

Similar to Chainlink, the Grayscale Solana Trust (GSOL) is trading at 4x or 300% premium to the spot price. The shares of GSOL are currently trading at $202 while the spot price is around $55.

On Friday, November 10, the GSOL share price shot by 61% shooting past the $200 level. The GSOL share price is now up by more than 800% since the beginning of the year. This highlights massive institutional participation in Solana.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.