Solana (SOL) had taken a significant hit in value as the cryptocurrency market was devastated by the liquidity crisis at FTX; however, on November 23, the token underwent a massive rally.
Currently, Solana is trading at $13.37, up $2.22 or (19.89%) in the last 24 hours but still down 5.89% across the previous week, as per Finbold data at the time of publication.
In the last 24 hours, Solana has added over $840 million to its market worth, climbing from $4 billion to $4.83 billion in less than a day, according to data retrieved from CoinMarketCap.
Interestingly, the CoinMarketCap crypto community is bullish on the near-term price of SOL. The collective estimate set the price of Solana at an average of $28.35 by December 31, 2022, according to the data retrieved on November 21.
SOL token heavily shorted
It is also important to note that the crypto market intelligence platform Santiment stated that trust in the DeFi asset has not yet been entirely restored in the cryptocurrency space. Per the platform, traders continue to short the asset heavily compared to most other cryptocurrencies. Santiment noted enormous short interest to Binance as SOL fell 63% in four days.
“There are not a lot of big #Solana believers, even as its price bottomed out at $11.02 and rebounded to $12.70 over the past 15 hours. This #FUD could cause more rebounding until traders slow down their nearly unanimous bets against $SOL’s price.”
Meanwhile, crypto data platform IntoTheBlock noted on November 21 the enormous decrease of over $900 million from total value locked in Solana DeFi protocols. Notably, over $900 million Solana was set to be unlocked on November 10, with the tokens at the time from the Solana stake accounting for 13% of the entire supply of the cryptocurrency.
“Total value locked in Solana DeFi protocols has declined significantly as a result of the FTX/Alameda debacle, falling from about $1.37 billion at the beginning of November to about $465 million on Nov 15th for a loss of over $900 million.”
All in all, despite the outflow of staked SOL, Solana’s price can rebound if buyers come together and begin accumulating to drive the price over the $13.84 barrier. Invalidating the bearish thesis would be a consolidation above this level followed by a change in market structure as a higher.
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