Solana (SOL) price fell sharply after FTX filed for bankruptcy. But SOL’s returns have been nothing short of miraculous, eclipsing Bitcoin and Ethereum with a year-to-date return of 195%.

While most believe that Solana is a sensitive issue due to FTX processing, there are several reasons why this is not the case.

Solana could outperform famous altcoins in 2024

The first reason for Solana’s price is that this altcoin is outperforming the major cryptocurrencies. In the past 10 months, SOL has increased from $9.97 to nearly $30. Rival Ethereum returned 25% on October 21 alone, while retail investors were busy paying attention to Chainlink’s 21% gain.

So where does this motivation come from?

  • Conflicting thoughts: Stay away from Solana due to the drama surrounding FTX and the ongoing bankruptcy case. But when the majority believes it, the chances of altcoin prices rising are high. This phenomenon is exactly what creates localized peaks during times of hype or retail frenzy. This is why cycle bottoms are formed during periods of capitulation. So, with this in mind, Solana price will continue to rise until everyone is convinced that SOL is an inducement coin due to the FTX program.

  • SOL’S SELL-OFF: One of the main reasons for fear of Solana’s price falling is the fact that FTX Estate holds millions of dollars. Although these SOL tokens may be sold, this will not happen overnight, but only after the FTX lawsuit is concluded.

  • SOL Staking and Fundamentals: While many feared FTX Estate would sell out of bankruptcy, they did the opposite – they staked $122 million worth of SOL and $5 million worth of ETH. The move strengthens altcoin Solana’s fundamentals and stems the sell-off, at least for a while. Therefore, this development may be one of the reasons why prices continue to rise.

  • SOL/ETH Ratio: Although Solana’s price situation is worse than Ethereum’s after the FTX crash, the SOL/ETH ratio has risen to 0.06, which is where it was nearly a year ago. The strength in Solana’s price signals another change in the pattern of losing interest in Ethereum.

  • Institutions Pick SOL: Finally, CoinShares head of research James Butterfill noted in an Oct. 9 report that Solana has seen significant inflows in 2022 and that it continues to “assert itself as the altcoin of choice.”

Overall, Solana’s price is largely ignored by retail investors, and as long as this holds true, SOL will likely outperform Bitcoin, Ethereum, Ripple, and other major altcoins.

Solana could more than double in price under the right conditions

After nearly a year of struggle, Solana (SOL) price has crossed the $25.86 mark. A quick break above the above barriers shows the strength of the bulls. For the current rally to continue, be prepared for a minor pullback to $25.86 or $24.43. A rebound from this level is key to initiating a rally towards $69.79.

On the other hand, if Solana price breaks out of the key low of $21.11, it will create a lower low and invalidate the bullish argument. In this case, SOL could return to $17.92.

(Personal opinion and does not constitute advice)

In the crypto industry, if you want to seize the next bull market opportunity, you must have a high-quality circle, so that everyone can stay together and maintain insight. If you are just one person, looking around at a loss and finding that there is no one around, it is actually very difficult to persist in this industry.

If you like it, please pay attention for more articles in the future.

Thanks for reading, see you next time!