Solana (SOL) held its intraday profits on November 30th when Grayscale Investments, the world’s largest cryptocurrency fund, announced the addition of SOL to its product line.
The digital asset class is growing and we are building our offering with it! Get acquainted with $ SOL, the native token of the @ Solana network, through the new Grayscale #Solana Trust. Learn more: https://t.co/QiT6u0xI7h pic.twitter.com/KAxRZAriRl
– Grayscale (@Grayscale) November 30, 2021
A $ 300 SOL advance?
SOL rebounded to nearly $ 217.50 after rising over 6.50% for the day. The Solana token gains were primarily part of a recovery move that began on November 28th, where it rebounded over 20% while testing a reliable multi-month ascending trendline as support (near $ 190), as shown in the chart below shown.
SOL / USDT daily price chart with support for ascending trend lines. Source: TradingView
The recent bout of buying near trendline support also helped push SOL above the 23.6 Fib line (~ $ 204) on its Fibonacci retracement chart, which went from the $ 23.22 swing low to the 260 .69 dollar swing high is pulled. As a result, the $ 260 price level appears to be the last line of defense between SOL and a new record high.
“SOL, while it looks like it’s exhausted, is still a little over $ 300 possible (this season),” noted @fomocapdao, an independent market analyst, adding:
“It all depends [ecosystem though], that is, TVL, NFTs, Tabasco, announcements by announcements. “
“Persistent appetite” for Solana
Grayscale’s decision to add Solana to its service portfolio promised to make SOL visible to more wealthy and institutional investors.
This is largely due to Solana’s incredible growth as a blockchain project in 2021. The Layer-One protocol emerged as a rival to the other smart contract platforms, Ethereum, after providing users with one of the most affordable and fastest public ledgers available .
Solana blockchain performance compared to others. Source: Reddit
Solana’s ecosystem attracted over 500 projects spread across decentralized finance (DeFi), non-fungible tokens (NFT), web 3.0 and other sectors, with 1.2 million active users on the network. Among them is Serum, a decentralized derivatives exchange backed by FTX and Alamada Research of billionaire Sam Bankman-Fried.
As a result, the price of SOL, which acts as a fee and staking token within the Solana ecosystem, rose more than 10,700% year over year, with its circulating market cap peaking at nearly $ 77.93 billion in November.
SOL circulating market capitalization. Source: Messari
Valued at over $ 70 billion, Solana is still the fourth largest blockchain by market capitalization.
Related: Okcoin reports that altcoins sparked institutional interest in crypto for 2021
The statements came after Coinshares, a London-based asset management company, reported net capital inflows of over $ 250 million into its SOL-based exchange-traded products (ETP). This month alone, the Solana ETPs attracted around $ 42.2 million, as Coinshares pointed out in its November 29 report.
Despite claims that SOL should hit $ 300 next, the token is still facing downside risks due to some common issues including excessive valuations on longer-term charts and the possibility of network outages.
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