Amid a bullish start of the week that saw the majority of assets in the cryptocurrency sector record increases on multiple charts, Solana (SOL) is no exception, and indicators point to more gains, provided that the supply of SOL about to enter the market does not spoil its chances.
As it happens, pseudonymous crypto analyst Altcoin Sherpa has observed that the exponential moving average (EMA) of Solana was “healthy,” and the seventh-largest digital asset is one of the “best buys you can make,” according to the analysis shared in an X post on October 22.
Specifically, the expert believes if its EMA “can comfortably stay above $27, then $37 is the next area up,” but also warns about the SOL supply coming to the market via FTX, referring to the collapsed crypto exchange gaining court’s approval to liquidate $3.4 billion in cryptocurrencies, which mainly comprise SOL.
Indeed, the crypto trading platform, which imploded in November 2022, has received court permission to sell billions in crypto assets, including $1.16 billion in Solana, $192 million in Ethereum (ETH), $560 million in Bitcoin (BTC), and $137 million in Aptos (APT) so it could begin paying back its creditors.
As a result, this has sparked concerns among crypto enthusiasts, who fear that a massive liquidation could create strong sell-off pressure, causing the price of Solana to decline. However, the court order allows the crypto exchange to sell only $100 million worth of its crypto holdings per week.
Solana price analysis
At press time, the price of Solana stood at $29.51, recording a 3.34% gain in the last 24 hours, adding up to the more significant increase of 27.48% on its weekly chart and an impressive 51.25% advance in the last 30 days, according to the latest data on October 23.
Despite investor fears, Solana remains one of the best-performing cryptocurrencies in 2023, having gained 197.77% since the year’s turn, largely thanks to the increasing activity on its network and a recent upgrade that reduced validator hardware requirements and added optional zero-knowledge-compatible encryption for transactions.
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