Solana outperforms Bitcoin despite taking massive hit after FTX crash
- Solana price has yielded 125.88% gains for holders since the beginning of 2023, against Bitcoin’s 78%.
- The Ethereum-killer outpaced large market cap assets with its bullish catalysts in product updates and launch of the Saga phone.
- Solana price more than doubled in 2023 and wiped out a majority of its losses since the FTX exchange collapse.
Solana, an Ethereum-alternative project, has more than doubled in price in 2023. The token outpaced Bitcoin, the largest asset by market capitalization, in its year-till-date returns. Interestingly, SOL price has wiped out most of its losses from the 2022 FTX exchange collapse.
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Solana outperforms the largest cryptocurrency in 2023
The Ethereum-killer token, Solana, has yielded 125.88% gains for holders in 2023. The altcoin outpaced Bitcoin and several large market capitalization assets as its price more than doubled since the beginning of 2023.
During Samuel Bankman-Fried’s FTX exchange collapse in 2022, SOL price nosedived 94%. Since then SOL price has recovered, shedding its association with the collapsed exchange and its founder.
SOL price chart
Against Solana’s massive gains, Bitcoin price yielded nearly 80% gains for holders since January 1, 2023, as price climbed from $16,000 to nearly $30,000. Solana has nearly recovered from the FTX exchange fallout.
Bullish catalysts driving Solana price rally
The key catalysts driving Solana’s price rally in 2023 include the development and launch of the Saga mobile phone, Solana’s growing NFT ecosystem and higher utility of the blockchain with a large number of DApps joining the network.
These catalysts have fueled SOL price recovery. Post FTX fallout, SOL price plummeted to $13.25 in November 2022, and made a comeback to $22.49 in April 2023.
What to expect from SOL price
Solana price is currently in an uptrend that started in the beginning of 2023. The altcoin’s price more than doubled, wiping out nearly 50% of the losses from the FTX exchange fallout, at its 2023 peak of $27.11.
At press time SOL price is above its 10 and 50-day Exponential Moving Averages (EMAs) and the 200-day EMA at $25.18 is the immediate resistance for Solana. Other key resistances are the 50% Fibonacci Retracement at $23.36, the 61.8% Fibonacci level that coincides with the 2023 peak at $27.
As long as SOL price stays above the trendline, the uptrend is expected to remain intact.
SOL/USD 1D price chart
If Solana price sees a definitive close below the trendline, it could invalidate the bullish thesis and SOL could find support at the 38.2% Fibonacci level at $19.74 and key support level at $18.23.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
