• Grayscale’s Solana Trust (GSOL) is currently trading at a remarkable 445% premium to its underlying assets, indicating a surge in institutional interest.
• Solana (SOL) has experienced a significant price rally, forming a rounding bottom pattern on the weekly chart and signaling a robust trend reversal.

Grayscale’s Solana Trust (GSOL) is currently experiencing a remarkable 445% premium to its underlying assets, reflecting a surge in institutional interest within the cryptocurrency industry, as indicated by CoinGlass data. This week, the GSOL share price has entered a significant correction with the premium being as high as 869% as of last Friday, November 10.

The expanded premium follows a 20% surge in SOL, the underlying asset, on Friday. Solana has been on an unstoppable price rally since September end as the price reached $60. Just over the last month, the SOl price is up by a staggering 171%.

Positive sentiment strengthened after the recent conviction of FTX founder Sam Bankman-Fried on seven counts of fraud earlier this month. The SOL token gained recognition as one of the “Sam Coins” prior to the exchange’s collapse, given FTX’s substantial investments in the ecosystem, notably constructing Serum, a decentralized exchange, on the Solana network.

In recent months, institutional interest in crypto has risen, with CME, the preferred venue for institutions, surpassing Binance in derivatives market share. This upswing is linked to optimism surrounding the potential approval of a spot Bitcoin ETF, a prospect consistently denied by the SEC in recent years. Grayscale stands as the exclusive institutional on-ramp for Solana, given that CME only lists Bitcoin (BTC) and Ethereum (ETH).

Solana Price Eyes $100

Forming a rounding bottom pattern on the weekly chart, Solana (SOL) has demonstrated a robust trend reversal, showcasing a noteworthy 168% price increase over the past five weeks and hinting at a potential bullish breakout from the rounding bottom.

At present, SOL is traded at $58.89, registering a 3.91% intraday growth and forming a bullish engulfing candle. The bullish turnaround is further supported by a significant increase in trading volumes over the weeks, indicating a substantial rise in underlying demand.

Key Technical Indicators:

• RSI: The daily Relative Strength Index (RSI) has entered the overbought territory, maintaining a positive trend and emphasizing a strong bullish momentum.
• EMA: The golden crossover event between the 50-day and 200-day Exponential Moving Averages (EMA) validates the ongoing trend reversal, enhancing the overall sentiment surrounding Solana.

Amid the current price rally, Solana has outclassed every other cryptocurrency in the market. In fact, the 2023 returns for Solana are four times that of Bitcoin’s.

Additionally, as FTX’s liquidation of SOL holdings occurs, the market adeptly absorbs the supply, especially as the vesting schedule concludes. The continuous uptrend surpasses the psychological milestone of $50, and the Solana price prediction remains optimistic, with a target set at $100.