Solana (SOL) price is coming up as one of the strongest bullish contenders of the last quarter of 2023. Although ‘Uptober’ started with Bitcoin (BTC) blasting above $30,000 and trading at a new yearly high at $35,000, the largest crypto took a breather such that it is consolidating the gains above $34,000.
On the other hand, Solana has managed to wade off negative sentiments, which have been calling for a correction since SOL climbed above $30. Not even reports of the embattled crypto exchange FTX moving millions of funds in SOL and other tokens have been able to stop Solana’s rally, which seems very close to blasting above a critical resistance at $40.
Solana Price Prediction: Assessing The Bullish Market Structure
Within the two bullish consecutive months—September and October, Solana was able to topple immense resistance at $25, $28, $30, and most recently at $35.
The smart contracts token increased 88% from September 1 to October 31, with 56% of the gains accrued over the last 30 days alone to exchange hands at $36.
Going by the position of the Relative Strength Index (RSI), SOL is mainly in bullish hands. There were tell-tale signs of a reversal below $30 last week, but the RSI bounced off at 70, accentuating the bullish picture which encouraged traders to keep their buy positions open.
An accumulation drive at $30 allowed bulls to build the necessary momentum for the resumption of the uptrend and boost Solana price above $35.
The presence of a bullish cross also played a significant role by enhancing positive sentiment among investors who now believe SOL is on a recovery path not only to $40 but also targeting $50 in the short term.
A golden cross occurs after a short-term moving average flips above a long-term moving average. For example, in SOL’s case, the 50-day Exponential Moving Average (EMA) (red) crossed above the 200-day EMA (purple) on October 22, which helped to validate the uptrend.
The last time Solana presented such a bullish cross was in 2021, ushering in the previous bull run where SOL went ahead to achieve a new all-time at $260 in November of the same year.
Therefore, if history is to repeat itself, as it is common with markets, Solana price could be in for a remarkable rally.
Nevertheless, it is worth considering the possibility of a pullback to $30 before SOL launches the larger breakout above $40. Traders may want to keep in mind the potential resistance at $38.5 which could delay the breakout. Above $40, Solana price will likely have a smooth climb to $50 with a brief delay likely in the region between $45 and 46.
Solana Leads Altcoins In AUM Inflows
Funds flowing into crypto investment products increased to $326 million last week. According to CoinShares which monitors assets under management (AUM) in the industry, this marked the biggest inflows since July 2022.
Bitcoin was the biggest gainer, seeing a 90% increase in inflows to $296 million, thanks to optimism around the potential approval of BTC spot exchange-traded funds (ETFs).
Among altcoins, Solana was the undisputed king, accounting for approximately $24 million of the total crypto fund inflows, followed by Litecoin with $0.5 million and XRP with $0.2 million.
Despite the increase in Ethereum price to above $1,800 related weekly fund outflows increased to $6 million. Cardano and Tron remained unchanged, seeing no inflows or outflows.
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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.
