There is a story behind the price fluctuation of SOL. You can think of SOL's current rally as an oversold rally. In this year's bear market, the SOL price experienced a step-by-step decline, but when the price stabilized at around $30, it had actually entered a relatively stable level and could have continued to maintain a volatile state. However, after July 14, FTX faced a liquidation problem because FTX owned a large amount of SOL. According to the requirements of creditors, they needed to sell SOL at a certain amount every week in July to repay their debts. The news of this news caused the price of SOL to fall again, and the current downward trend showed a stepped shock pattern.
The recent rise in SOL prices is more like an emotional oversold rally than a technical push. Recently, FTX’s bankruptcy liquidation client pledged SOL worth 122.55 million to the Lido project. This reinforces optimistic expectations for SOL’s future while alleviating concerns caused by the token sell-off in July due to liquidation. Therefore, SOL's current rally is primarily an emotional rally.
How will SOL develop in the future? Currently, the price of SOL has reached a relatively high pressure range, roughly between $28-32. To break through this range and rise above $40 will require sufficient financial support and high emotional activity in the market. However, if the ETF hype subsides after next Tuesday, SOL may not be able to break out of this pressure range in the short term. Of course, the FOMO sentiment on Monday and Tuesday may also push SOL beyond this range, but whether it can continue to rise depends on the performance of market sentiment and funds.
In addition, it should be noted that the Lido community has voted to temporarily cancel the staking option for SOL. This means that it is currently not possible to stake SOL to Lido, but users who are already staking can still receive benefits. However, it should be noted that if staking is not stopped before February next year, the previous pledgers may not be able to withdraw their SOL in advance.
If you hold SOL, you can make flexible adjustments based on the current situation. If you are a staker, remember to consider what to do with your pledged SOL before February next year
