Solana price eyes $300 as Grayscale launches SOL-backed trust

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Solana (SOL) maintained its intraday gains on November 30 as Grayscale Investments, the world’s largest cryptocurrency fund, announced it would add SOL to its product line.

A SOL at $ 300 in advance?

SOL climbed to nearly $ 217.50 after rising more than 6.50% intraday. The gains in the Solana token mainly came as part of a rally that began on November 28, in which it rebounded more than 20% after testing a reliable multi-month ascending trendline as support ( nearly $ 190), as shown in the graph below.

SOL / USDT daily price chart with ascending trendline support. Source: TradingView

The latest buy episode near trendline support also helped push SOL above the 23.6 Fib (~ $ 204) line of its Fibonacci retracement chart, drawn from the 23 low. $ 22 to the high of $ 260.69. As a result, the $ 260 price point appears as the last line of defense between SOL and a new high.

“SOL, although it looks like burnout, something at $ 300 is still possible (this season),” noted @fomocapdao, an independent market analyst, adding:

“It depends on the whole [ecosystem though], ie TVL, NFT, Tabasco, announcements of announcements. “

“Continuous appetite” for Solana

Grayscale’s decision to add Solana to its service portfolio promised to make SOL visible to institutional and high net worth investors.

This is mainly due to Solana’s incredible growth as a blockchain project in 2021. Layer one protocol has become a rival to the Ethereum smart contract platform after providing users with one of the lesser public ledgers. expensive and fastest.

Performance of the Solana blockchain compared to others. Source: Reddit

Solana’s ecosystem has attracted more than 500 projects spanning decentralized finance (DeFi), non-fungible tokens (NFT), Web3 and other industries, with 1.2 million active users on the network. Among them is Serum, a decentralized derivatives exchange backed by billionaire Sam Bankman-Fried’s FTX and Alamada Research.

As a result, the price of SOL, which functions as a fee and staking token within the Solana ecosystem, has jumped over 10,700% year-over-year with its outstanding market capitalization hitting a low. peaked at nearly $ 77.93 billion in November.

SOL current market capitalization. Source: Messari

Now valued at over $ 70 billion, Solana is still the fourth largest blockchain by market capitalization, Grayscale CEO Michael Sonnenshein noting that there is already a “continuing appetite” among investors for exposure. to the blockchain project.

Related: Okcoin Reports Altcoins Have Sparked Institutional Interest In Crypto For 2021

The statements came after Coinshares, a London-based asset management company, reported net inflows of more than $ 250 million in SOL-based exchange traded products (ETPs). This month alone, Solana ETPs have attracted around $ 42.2 million, Coinshares noted in his Nov. 29 report.

Despite calls for SOL to hit $ 300 next, the token still faces downside risks due to a few general issues including overpriced valuations on longer-term charts and potential for network outages.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.