Back to the list

Solana (SOL) Eyes a $60 Retest But Here’s What It Requires

source-logo  coinedition.com 29 November 2023 09:24, UTC

Solana (SOL) tapped $58.47 again after the altcoin followed the upward direction of the broader market on November 28. This increase could be attributed to Bitcoin’s (BTC) initial jump above $38,000 on the same day.

While Bitcoin has retraced from the said value, SOL was once again the top gainer out of all the top 10 cryptocurrencies as per market value. According to the SOL/USD 4-hour chart, the cryptocurrency was able to flip the $53.93 support.

However, during its upward run, SOL faced a barrier at $56.31. But with bulls in control of the market, SOL was able to beat the resistance while eyeing a fresh weekly high. Indicators like the Relative Strength Index (RSI) signal a potential for more upside.

Bulls Send Bears Into Extinction

At press time, the RSI was 60.22. This reading was largely above the neutral 50.00 point, indicating a clear bullish momentum for SOL. Should this buying momentum continue and the bearish presence continue to exit the market, then SOL may retest $60.

The Moving Average Convergence Divergence (MACD) also showed that the token’s upside potential was greater than the possibility of a slide. This was because the MACD had crossed into positive territory.

But for SOL to hit $60 or more, the 12-day EMA (blue) needs to move higher than the 0.14 reading. At the same time, the 26-day EMA (orange) needs to continue languishing in the red area to confirm the uptrend.

SOL/USD 4-Hour Chart (Source: TradingView)

Institutions Have Eyes on SOL

Besides the technical aspect, the macroeconomic view revealed that there is a lot of institutional interest in Solana and products linked to the project. At one point, CoinShares, the digital asset investment group, reported that the capital inflow into Solana investment products almost exceeded that of Bitcoin.

In its recent Digital Asset Fund Flow report released on November 28, CoinShares noted that SOL was the altcoin, apart from Ethereum (ETH), with the highest share of inflows. The report noted that the weekly inflow allocated to Solana investment products was worth $3.5 million.

Digital Asset Fund Flow (Source: CoinShares)

The rise in inflows is proof that retail players were not the only participants watching SOL’s movement closely. If institutional capital continues to flow into Solana, then there is a chance that the cryptocurrency may hit a new Year-To-Date (YTD) high.

However, bulls need to watch out for profit-taking which could be the play of some short-term traders. Should some selling pressure appear, SOL’s price may drop. But if the $53.93 support retains its place, the cryptocurrency’s next leg up could surge past $65.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.