Solana: Here’s Why SOL Spiked 10% today, Will it Continue?

Paigambar Mohan Raj
Source: Marca

Solana (SOL) became one of the worst-performing crypto assets of 2022 after the FTX fiasco. SOL’s price has dropped more than 90% from its peak. However, Solana engineers contend that the network was unaffected by FTX’s failure. Nonetheless, the crypto coin witnessed a 10.6% jump in the last 24 hours.

Recently, Ethereum co-founder Vitalik Buterin showered some praise and sympathy for the SOL network. Buterin said that he has been told that there are earnest and smart developers in the SOL community. Buterin added that he hopes the network gets a fair chance to thrive.

Now, Solana has been on a bullish stride for the last couple of days. The low price value might have attracted new investors into the network. SOL has proven itself as a network with several use cases, albeit many developers have jumped ship after the FTX fiasco.

Lastly, SOL recently formed a Doji candlestick and the present surge may perhaps be a response to it. When an asset opens and closes at almost the same level in a certain period, a Doji is created. On its daily chart, SOL created what seemed to be a “standard Doji” on December 29.

Will Solana continue to rally?

Global macroeconomic conditions have not improved as yet. Moreover, interest rates are still high, and will likely continue to be that way until late 2023, or mid-2024. Hence, investments in risky assets such as crypto are unlikely to be a priority for many. Therefore, SOL’s rally might not continue for long.

Moreover, the crypto markets are very correlated at the moment with Bitcoin (BTC) at the lead. Hence it is unlikely for SOL to continue its rally without BTC making a move.

At press time, Solana (SOL) was trading at $10.98, down 3.7% in the last week.