Solana (SOL) rose another 18% to hit a new annual high of $63.98 on November 11, capping an impressive 40% rally this week.
The token has since regained some of its gains and is trading at $59.34 at the time of writing, according to data from CryptoSlate.
The past seven days marked the best weekly performance for Solana since January 2023. The rally is mainly driven by excitement over BlackRock’s ETF filings and waning fear around FTX’s SOL holdings.
The fear of FTX dumps is decreasing
FTX’s bankruptcy estate has sold 250,000 to 750,000 SOL tokens in the past two weeks. The estate had received court approval to conduct a sale of 55.75 million SOL tokens in September 2023.
However, despite initial fears, the sales have had limited impact on price action due to vesting and lock-up mechanisms, coupled with a weekly selling cap of $100 million. Concerns are shifting to investor enthusiasm as the market continues its green trajectory.
Solana-focused funds, which serve as a barometer for institutional flows in the SOL market, witnessed inflows totaling $10.80 million in the week ended November 3, according to Coin shares.
Meanwhile, asset management giant VanEck said in a recent research report that SOL could grow 10,000% in value if it managed to onboard 100 million users.
ETF euphoria
Meanwhile, the excitement around Bitcoin and Ethereum ETFs filed by the likes of BlackRock has played a crucial role in the overall upward trend in cryptocurrency prices – driven mainly by the flagship crypto’s rise above $37,000.
Despite the news focusing on the two largest cryptos in the sector, market optimism has altcoins pumping as investors begin to shift their gains from Bitcoin gains to small-cap tokens.
Solana has been one of the best performing digital assets over the past thirty days, demonstrating its resilience and attractiveness to investors.
Solana’s open interest on futures reached a substantial level of around $772 million on November 11, the highest since 2021, when SOL set its all-time high of $260. High open interest levels indicate increased interest and potential liquidity in the market.
Market sentiment towards SOL remains strongly bullish. However, the weekly relative strength indicator (RSI) is at its most overbought level since September 2021, raising the possibility of a correction.