Solana price rallied 174% in 30 days to trade at $63 backed by increasing total value locked (TVL) by $233 million from early October.
Published 2 hours ago
Select altcoins continued with the Q4 rally after the release of the United States Consumer Price Index (CPI) data on Tuesday. This bullish outlook included tokens like Solana (SOL) up 20%, Chainlink (LINK) up 5%, Avalanche (AVAX) up 17%, Cardano (ADA) up 4.2%, and more.
However, the two most prominent cryptos Bitcoin (BTC) and Ethereum (ETH) appear sidelined, barely changing over 24 hours.
Solana Price Blasts Past $60
Solana is among the biggest gainers on Wednesday, following another impressive move above $60. The correction to $50 earlier this week allowed sidelined investors to book positions in SOL. Traders also jumped on the bullish bandwagon, anticipating a larger breakout.
In the previous analysis, we discussed how institutional investors were flocking to Solana’s related products, increasing assets under management by $12 million.
With a higher support above the grey band, Solana could be ripe for more gains targeting $100.
The Moving Average Convergence Divergence (MACD) stands in support of the uptrend, still flaunting a call to buy SOL for the second month in a row. Traders holding long positions in Solana may rest easy knowing that the uptrend is nowhere near exhaustion, especially with the blue MACD line above the red signal line and the momentum indicator at 7.65 and still trending higher above the neutral area.
The upper descending trendline, as shown on the chart, and the support area in grey may determine the next course of action for Solana price. A break above the trendline resistance would imply that SOL has the strength to keep moving higher.
Such a move could see investors quickly shift their attention to $70 with the coveted $100 coming within reach. This bullish outlook would be backed by a couple of golden crosses formed when the 50-day Exponential Moving Average (EMA) (red) flipped above the 100-day EMA (blue) and the 200-day EMA (purple).
On the other hand, a bearish impulse will start to take shape if Solana slides below the grey support area around $60. This could compel traders to immediately close their positions adding credence to the bearish thesis. Moreover, investors may offload their SOL wallets, hoping to buy again when the price bounces off support at $50.
Solana’s DeFi TVL Hits $557M
Data from the decentralized finance (DeFi) tracking platform, Defi Llama reveals a remarkable increase in the dollar value of Solana locked in smart contracts.
The protocol’s total value locked (TVL) has since the beginning of October increased by a whopping $233 million to $557 million. Active addresses within the Solana deFi sector are also increasing, with 130,554 recorded in the last 24 hours.
The surge in SOL’s TVL is a testament to the improving investor sentiment. Investors are willing to bet on the long-term outlook of the Solana network and value as opposed to locking in gains at their earliest sign.
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.