Solana is back at it after losing half its value within two days. On Friday, the cryptocurrency had recovered more than 20%. This raises hopes that SOL will surpass a possible single-digit price. How likely is it that the rally will be sustained?

You know that SOL has been falling heavily due to the potential unlocking of coins at the end of Epoch 370. Since then, the unlock has been delayed. This has prevented further decline of the token. The postponing allows a restaking of the tokens, saving about 28.5 million SOL tokens from entering supply.

Another factor that has helped SOL is a slightly improved crypto sentiment. Inflation data from the US for October revealed that prices rose below estimates. The data fueled a relief rally in cryptocurrencies, and SOL benefited in the process. This news helps to bolster crypto sentiment, which was already weakened by fears following the collapse in the FTX exchange.

SOL is still not far behind. DeFiLlama data shows that activity on blockchain has been in a downward trend for the past week. The total value locked on the blockchain is currently $471. 69 million, from $1 billion on November 6. The declining TVL could be a challenge to a sustained SOL recovery.

SOL price outlook amid a relief rally in a bear market

Source – TradingView

SOL’s price outlook shows the token recovering from the oversold level of $11.7. Although the RSI has moved above the oversold level, it remains below its midpoint. SOL has another upside as the relief rally appears strong.

Should you buy SOL?

Solana token will face a litmus test at $28. This is the long-term resistance, which was lost when the price crashed below.

From a fundamental perspective, it is not wise to buy SOL now. A decline in TVL could prevent a sustained recovery of the token. For now, investors can enjoy the relief rally up to $28, which must be overcome to make a bullish call.

Where to buy SOL

eToro

eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users have the ability to connect with, learn, copy, or get copied from other users.

Get SOL today

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

Binance is known for its low trading fees and multiple trading options. These include margin trading, peer-to-peer, spot trading and margin trading.

Get SOL with Binance now