SOL, the main cryptocurrency of Solana, is among the best-performing coins in the top 10, as per CoinMarketCap, a cryptocurrency tracking platform. On October 31, SOL was trading above $36, reaching its highest point in 2023.
This recovery comes after a significant drop following the FTX incident, where the coin fell to as low as $8 in the fourth quarter of 2023. However, it has been steadily bouncing back over the past 11 months.
Solana Skyrockets 150% to Recover from FTX-Related Losses
Currently, SOL has surged over 150% from its lowest point in November 2022. It’s surpassing the performance of Bitcoin (BTC) and Ethereum (ETH), which have also seen their prices rise by more than 100% from their 2022 lows.
Solana price on October 31| Source: SOLUSDT on Binance, TradingView
On the daily chart, SOL is in a bullish breakout pattern, trading above its high point in July 2023, which was around $32. What’s interesting is that the recent price increase is accompanied by higher trading activity, suggesting that optimistic traders may be supporting the uptrend.
Additionally, the bull bars on the chart are consistently above the upper Bollinger Bands (BB), which are separated from the middle BB. This indicates that the uptrend has strong momentum and may continue to drive up prices. Bollinger Bands are a way to measure price volatility. When the bands are apart from the middle one, it signals higher volatility, as we see with Solana’s current price levels.
The drop in SOL’s value in November 2022 was due to the bankruptcy of FTX, a popular exchange. The collapse occurred when it was revealed that the founder, Sam Bankman-Fried, had misused user funds.
Why Did the Bankruptcy Trustee Stake SOL if They Can Sell It?
FTX, a major holder of SOL, filed for bankruptcy in November 2022, causing SOL prices to drop. FTX holds a substantial amount of SOL and BTC, and they were given permission to sell these assets to pay off debts by a court ruling in September.
In mid-October, the FTX estate staked 5.5 million SOL using a platform called Figment, mostly used by institutional investors. By staking, they expressed confidence in SOL because they have the option, as directed by the court, to sell it whenever needed. Additionally, staking would earn them more SOL.
However, a report on October 31 by Nansen revealed that the FTX estate unstaked 1.6 million SOL. It’s uncertain whether these unstaked tokens will be sold on exchanges, potentially affecting SOL’s price.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
