Solana has performed exceptionally well in the October crypto market rally. But crypto analyst FieryTrading believes that this might just be the beginning for the SOL price. According to the analyst, once Solana breaks the resistance at $38, then it is headed for another 150% increase.
Pushing Solana To Past Glory
Solana already made its way through to $39 over the last day before losing some of its gains. But this has not eliminated the bullish trajectory of the altcoin. In fact, SOL’s continued uptrend plays into FieryTrading’s prediction for the asset which puts it at $100.
As the crypto analyst points out, there is heavy resistance for Solana just around the $38 level and this has been proven by the coin’s performance so far. Its initial move above this level was met with resistance that pushed it back down toward $37 before resuming its rally once again.
FieryTrading refers to this as an “important area of resistance” at which he expects investors to begin some profit-taking. But a break above this level holds a lot of promise for SOL. The analyst expects an initial bounce above $40, a slight retrace, and then a surge to $100.
Source: Tradingview.com
Returning to this $100 level would mean a return to the 2021 bull market levels, essentially signaling the start of the bull market for Solana. However, there are still some obstacles to face as the Bitcoin slowdown is having a near market-wide effect.
FTX Stash Threatens SOL Price
By now, it is no longer a secret that the bankrupt FTX exchange is one of the largest holders of SOL. And recently, the estate got the green light from the courts to start selling off some of its crypto holdings and Solana is a prominent asset in its stash.
As NewsBTC reported, the FTX estate recently unseated a soul of 1.6 million SOL tokens worth over $42 million. Now, there hasn’t been any indication of what FTX plans to do with these tokens but the likely outcome is that the estate will start selling the tokens on the open market.
If this happens, then investors should expect significant selling pressure on the SOL price which could send it back down toward $30. This FTX stash remains one of the most bearish indicators for the altcoin that could stop its rally dead in its tracks.
Nevertheless, Solana is still seeing a lot of interest from large institutional investors. CoinShares reported that Solana inflows from last week came out to $23.9 million, bringing the total SOL assets under management (AuM) to $214 million.
SOL breaks $38 resistance | Source: SOLUSD on Tradingview.com
Featured image from Shutterstock, chart from Tradingview.com