As a seasoned researcher with over a decade of experience in the crypto market, I’ve seen my fair share of bull and bear runs. The recent performance of Solana (SOL) has certainly piqued my interest, not just because of its impressive recovery from the weekend dip, but also due to the inflows it has been seeing.
On the weekend, Solana’s (SOL) price reclaimed a substantial chunk of its gains from the previous week’s upswing, suggesting that the market is quite volatile. Despite the fact that low trading volume is usually prevalent in the crypto world during August, Solana shows great promise and could potentially make a major comeback.
Solana AUM Grows By $4.5M
On Sunday, Solana’s price broke through new market liquidity at around $140, a move spurred by increasing risks on the downside for Bitcoin, Ethereum, Ripple, and other crypto assets. Yet, the latest CoinShares digital asset flows report indicated a growing investor interest in Solana, with approximately $4.5 million in investments flowing into it during that week.
As a researcher, I’ve noticed an upward trend in investor activity this week, indicating they capitalized on the downtrend early last week by increasing their holdings. Furthermore, the overall sentiment towards Solana (SOL) price remains optimistic, as there’s a growing surge of optimism that a spot ETF could be approved before the end of 2024.
The total amount invested amounted to approximately $176 million, of which Ethereum accounted for about $155 million, making it the largest investment, while Bitcoin followed closely with around $13 million. If the trend of investors depositing into cryptocurrencies and SOL products persists this week, traders might observe a surge in price towards $180 and potentially even reaching $200.
As I analyze the current market trends, it appears that forced liquidations of short positions are on the rise. From the data provided by Coinglass, it seems that traders have been closing a total of approximately $4.92 million in short positions and $3.27 million in long positions, indicating a shift in market sentiment towards more bearish attitudes.
When quick sales (liquidations) of long positions exceed those of short positions, it frequently indicates a growing optimism among investors. Important to remember, the compulsory purchases triggered by liquidated short positions can boost price surges, possibly resulting in a situation known as a “short squeeze.”
Solana Price Analysis: SOL Recovers From Key Support
As an analyst, I am observing a potential trend reversal for Solana’s price. The recent dip seemed to find solid support around the $140 mark, bolstered by the 200-day Exponential Moving Average (EMA). If we manage to break above the $150 level in the American trading session, it could signal a resumption of the bullish trend, potentially pushing the price toward $180.
The primary profit objectives involve aligning with three significant resistance levels: firstly, the point where the 20-day and 50-day Exponential Moving Averages meet ($155), secondly, the resistance level established last week at $160, and finally, the weekly goal of reaching $180.
This Solana price prediction cautions traders against going all-in on SOL buy orders amid rumors of continuing VC token unlocks. Token unlocks increase circulation supply and often dampen price recovery or uptrend continuation.
A persistent warning from the Moving Average Convergence Divergence (MACD) indicates it might be wise to wait for additional evidence before investing in SOL. If the 200-day Exponential Moving Average (EMA) fails to maintain its support, the price of Solana could potentially drop to around $130 and $110, seeking more market liquidity.
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2024-08-12 18:54