Solana Price Rallies Over 69% in Past Month, Why is SOL Pumping?

Published: Nov 2, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

The price of Solana (SOL) has surged around 69.5% over the past month, leading up to the breakpoint in 2023, according to analysis by on-chain tracking firm Lookonchain. However, previous pump and dumps around the event raise questions.

Solana is currently trading around $40.50, up from under $25 in early October. Lookonchain cited several factors that may be influencing the latest rally.

In the past two years, SOL prices rose into the breakpoint event before declining afterward. The breakpoint timing appears to be correlated with SOL strength, according to Lookonchain.

FTX related selling?

Crypto exchange FTX has transferred over 2.14 million SOL worth $94 million in the past week. Lookonchain suggests FTX could be elevating prices before unloading holdings. FTX still holds 4.8 million SOL worth over $211 million and 3.96 million SOL in the stake account.

According to data from CoinGlass, SOL long positions exceed shorts on Binance. The platform’s SOL long/short ratio based on user accounts sits at 1.2134. More bullish retail trading may be driving up prices.

The total SOL supply is around 561.4 million tokens, worth nearly $25 billion. Over 406.6 million SOL are actively staked, while 419.5 million are in circulation.

The top 30 SOL wallets hold 90 million tokens worth over $4 billion combined, accounting for almost 17% of the total supply. Large holders may sway prices.

The analysis comes as Solana faces tension amidst the movement of SOL by FTX and the much-awaited final verdict of Sam Bankman-Fried. Still, SOL’s technical strength has also improved after a brutal bear market.

Despite the problems faced by FTX, SOL has surged by 69.5% in the last 30 days and by 28.8% in the last seven days. CoinGecko data also shows that SOL is up by 26.2% year to date.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.