Solana (SOL) is showing some bearish moves, sliding down from its ATH touched in the previous session and weakening below the all-important $ 200 mark, but remains one of the most prominent altcoins to watch for in terms of volatility and price movement . At the time of writing, SOL / USD is trading at around $ 192.42.
Institutional investors are relying heavily on the potential of the ultra-high-speed blockchain network to conquer the market leader Ethereum as an attractive ecosystem for dApps, especially in the DeFi and NFT sectors. Latest data from CoinShares shows that Solana has seen institutional inflows of up to $ 8.1 million in the past week, making it the second most popular crypto among serious investors after Bitcoin.
The sixth largest cryptocurrency by market cap has seen quite an upward trend lately, aided by bullish sentiment towards cryptos in general and a booming interest among DeFi project users in their ecosystem. While the TVL in DeFi has surpassed $ 236 billion across all blockchains, Solana’s contribution has grown by over $ 2 billion to nearly $ 12.5 billion since the beginning of this month.
Other basics that Solana’s rally can aid
Crypto investor interest in Solana could get an extra boost as leading social trading platform eToro makes its token available to its Australia-based users to trade from November 1st. This could further increase the attractiveness of SOL among crypto traders and support the price in the coming weeks.
Meanwhile, Solana-based projects are raising significant capital to move forward. DeFi Protocol Solend recently announced that it has raised $ 6.5 million in funding from several key investors including Solana Ventures, Polychain, Coinbase Ventures, Dragonfly, and more. Another project that offers perpetual swaps on its DEX, Drift, recently received $ 3.8 million in seed funding and is expected to launch soon and support for SOL, BTC, ETH, and Solana-based Offer tokens.
SOL / USD technical analysis
The leading crypto strategist and trader, operating under the pseudonym Smart Contracter, has forecast an imminent strengthening of the Solana rally. According to his technical analysis, the uptrend is just beginning, which means we can expect new ATHs this cycle.
LEFT / USD
If we look at the SOL / USD H4 price chart, we can find a bearish bias in the smaller moving averages and the MACD. However, the larger time frame MAs – 50 EMA, 100 EMA and 200 EMA, along with the momentum indicator also suggest some buying interest.
The price of Solana currently remains just above the pivot point at $ 190.15. This level could soon be tested due to heightened selling pressure due to profit-taking by investors. However, with more buyers entering now, we can see SOL rise again above $ 200 and above its ATH to higher levels to the resistance at $ 227.13.
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