As an analyst with over two decades of experience in the financial markets and a keen interest in the cryptocurrency space, I must say that the current SOL/ETH pair dynamics are quite intriguing.
The value of SOL/ETH exchanges stayed quite stable due to liquidity issues affecting various markets, including crypto. As investors expect multiple interest rate decreases in the U.S. starting from September, there’s a possibility that Solana’s price could increase significantly before other digital currencies, possibly reaching around $200.
SOL/ETH Price Market Movers: Rising DeFi TVL and And Whale Buying Spree
Solana price collected liquidity at $140 this week, paving the way for a reversal to $145 as the protocol’s decentralized finance (DeFi) ecosystem made a comeback in the total value locked (TVL). According to DeFi Llama, the value locked in smart in the protocol’s smart contracts has surged to $4.98 billion from the early August crash to $3.8 billion. An increase in this metric is often viewed as a bullish signal for reducing the potential selling pressure. Investors show confidence in the asset, committing their holdings to secure the protocol and earn rewards.
However, while the price of ETH temporarily rose to around $2,700, it subsequently corrected to $2,664 due to decreasing liquidity and a gradual acceptance of Ether ETFs. If large investors continue showing interest in ETH, this sluggish trend might soon reverse. According to Santiment, entities holding between 1,000 and 10,000 ETH make up approximately 35.13% of the total supply, an increase from 34.77% just a month ago. Notably, addresses with between 10 million and 100 million ETH have been actively accumulating during the recent downturn, raising their holdings from 9.67% to 10% within the same timeframe.
Solana Price Analysis: Ready For A Move-Up
In simpler terms, the value of Solana relative to the U.S. dollar (SOL/USD) is currently above important levels of support, including the 200-day Exponential Moving Average (EMA) and the lower boundary of the Bollinger bands. It’s expected that a bounce back towards the middle of these indicators could occur more frequently, potentially pushing the Solana price up toward $160.
During a Bollinger Band Squeeze, the upper and lower bands come close together, suggesting low volatility much like the present scarcity of trading opportunities. When the bands separate after this squeeze, it usually signifies a substantial price shift. Given that the 200-day Exponential Moving Average (EMA) is providing support, traders might benefit from purchasing long positions in the SOL/ETH pair and waiting for a major breakout to 0.062.
As a researcher examining the SOL price prediction, I find that the short-term outlook is optimistic. However, it’s crucial to temper expectations given the volatile nature of the market. A potential downside could materialize if the SOL/ETH pair breaches its 200-day Exponential Moving Average (EMA). Such a move might instigate another round of selling, primarily affecting altcoins.
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2024-08-23 20:26