Is Solana's 102% surge a fluke or the start of a comeback story?

Big partnerships put the spotlight on Solana

The catalysts behind this rally appear tied to Solana's impressive partnership announcements during its ongoing Breakpoint conference. Two collaborations, in particular, grabbed headlines:

• Google Cloud integration - With his integration, developers and enterprises now have an easier way to access Solana-based data through Google Cloud's BigQuery. With easier access to on-chain data, businesses, analysts, and other stakeholders can gain deeper insights to drive business decisions.
• Amazon Web Services node deployment - With AWS's global network of data centres, the performance and uptime of Solana nodes become more robust. This reliability can instil confidence in businesses and developers, making them more likely to build on Solana.

Now, these announcements don’t mean much for everyday Solana users, traders or investors. However, they are big-name partnerships lending legitimacy to Solana in the eyes of many investors. With the market hanging on Solana's every move during Breakpoint, the price reacted accordingly.

SOL stayed resilient in the face of selling pressure

Now, many people are still wondering if SOL’s recent rally was just hype-driven FOMO or indicative of real fundamental progress.

Here’s an encouraging sign pointing to the latter. Despite a massive $75 million worth of SOL flooding exchanges from FTX accounts, SOL’s prices continued climbing.

Rather than dip under this concentrated selling pressure, Solana defied the bearish development and charged upwards. Could this show underlying strength in market demand?

If Solana netted upside despite substantial liquidations, perhaps investor interest runs deeper than short-term event-driven enthusiasm.

Questions remain on Solana's staying power

However, some ominous shadows still loom over Solana's outlook...

• Will developers and users stick around once the Breakpoint spotlight fades?
• Can Solana escape the gravitational pull of Bitcoin and the overall market if macro conditions deteriorate?

And most pressing of all:

• What happens when billions more in unlocked FTX tokens inevitably hit the market?

There's approximately $750 million worth of liquid SOL still held by the FTX Estate. Since they can liquidate up to $200 million worth of assets weekly, this could exert continuous selling pressure on SOL. In essence, the true test still lies ahead. Solana must prove its rally has legs without major conferences or hype cycles to propel it.

If Solana can continue its ascent against the odds in a harsh crypto winter, this recovery may signify a new chapter. So is Solana's revival sustainable, or just a temporary dead cat bounce? The coming months will tell. 

But in the meantime, check today’s analysis on where SOL is headed in the short to medium terms.