Solana price hits a new 2023 high – The Bull Run?

Solana’s native token, SOL, has experienced a notable 22% surge on November 10, reaching $62 and breaking through the $54 threshold for the first time since May 2022. This upward momentum is particularly impressive given the ongoing sale of SOL tokens by FTX’s bankruptcy estate. In September 2023, the Delaware Bankruptcy Court approved the sale of assets from the failed exchange, including 55.75 million SOL.

Investor optimism in the face of the token dump can be attributed to the fact that some of the tokens involved in the bankruptcy proceedings are either vested or locked. Additionally, a weekly sale limit of $100 million has been imposed as part of the FTX liquidation plan. This constraint has transformed initial concerns about asset liquidation into hope, as investors realize the limited impact of the sales.

Independent analyst Bluntz aptly captured the sentiment, describing SOL’s resilience during the FTX bankruptcy token dump as impressive. A post on X (formerly Twitter) by Bluntz adds a bullish case for SOL, suggesting that once the substantial seller pressure diminishes, the token could experience a significant price pump.

SOL’s price surge has been fueled by a robust demand for leverage longs, resulting in a substantial 39% weekly gain. This surge has pushed SOL’s futures open interest to $745 million, marking the highest level since November 2021 when SOL reached its all-time high of $260. Understanding the dynamics of the futures market requires scrutiny of SOL’s funding rate, where a positive rate indicates buyer demand for more leverage.

In conclusion, SOL’s impressive rally amidst the FTX token dump reflects its resilience and investor confidence in the controlled nature of the liquidation process. As the market awaits the conclusion of the token sale, SOL’s future trajectory will depend on factors such as the remaining sale volume, the behavior of leverage longs and shorts, and broader market conditions.