Solana (SOL) revisited $58.47, driven by the broader market’s upward trend on November 28. This surge can be attributed to Bitcoin’s (BTC) initial surge above $38,000 on the same day.
Although Bitcoin has retraced from that level, SOL remained the top gainer among the top 10 cryptocurrencies by market value. According to the SOL/USD 4-hour chart, the cryptocurrency successfully turned the $53.93 level into support.
In its upward trajectory, SOL encountered resistance at $56.31. Despite this, with bulls dominating the market, SOL overcame the barrier, setting its sights on a new weekly high. Indicators such as the Relative Strength Index (RSI) suggest the potential for further upside.
Bulls Drive Bears to Extinction
As of the current moment, the RSI stands at 60.22. This reading significantly surpasses the neutral 50.00 point, indicating a distinct bullish momentum for SOL. If this buying momentum persists and the bearish influence continues to diminish, there is a possibility that SOL may undergo a retest at $60.
The Moving Average Convergence Divergence (MACD) also suggests that the token has a higher likelihood of upward movement rather than a decline, as evidenced by the MACD crossing into positive territory.
However, for SOL to reach $60 or beyond, the 12-day EMA (blue) must rise above the 0.14 reading. Simultaneously, the 26-day EMA (orange) should remain in the red zone to confirm the upward trend.
Institutions are Keeping a Close Watch on SOL
In addition to the technical considerations, the macroeconomic perspective indicates significant institutional interest in Solana and related project-linked products. At a certain juncture, CoinShares, the digital asset investment group, reported that the influx of capital into Solana investment products nearly surpassed that of Bitcoin.
According to CoinShares’ recent Digital Asset Fund Flow report released on November 28, SOL emerged as the altcoin, alongside Ethereum (ETH), experiencing the highest percentage of inflows. The report highlighted a weekly inflow of $3.5 million allocated to Solana investment products.
The increasing influx of capital suggests that institutional investors are closely monitoring SOL’s movements, challenging the notion that retail players are the sole participants. If institutional capital continues to pour into Solana, there is a possibility that the cryptocurrency may achieve a new Year-To-Date (YTD) high.
However, it is essential for bulls to remain vigilant against potential profit-taking strategies employed by short-term traders. Any selling pressure could lead to a decline in SOL’s price. Nevertheless, if the $53.93 support holds, the next upward movement for the cryptocurrency could propel it beyond $65.
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