Solana Price Bullish Streak Likely To Continue As SOL Sees $4.5M Inflows
Solana (SOL) price clawed back a significant portion of gains from the previous week’s recovery on Saturday and Sunday, underscoring high volatility in the market. Although low volume has historically characterized crypto in August, SOL flaunts immense potential to make a significant recovery.
Solana AUM Grows By $4.5M
Solana price swept through fresh liquidity at $140 on Sunday as downside risks intensified for Bitcoin and other crypto assets like Ethereum and Ripple. However, the CoinShares digital asset flows weekly report revealed rising investor interest in SOL, which saw $4.5 million in inflows.
This uptick shows that investors capitalized on the downtrend early last week, increasing their holdings. Moreover, the general sentiment toward SOL price remained bullish as optimism for a spot ETF approval before the end of 2024 surged.
Total inflows reached $176 million, with Ethereum taking the biggest share with $155 million and Bitcoin emerging second with $13 million. If investors continue depositing into crypto and SOL products this week, traders can expect the price to gain momentum and tag $180 and $200, respectively.
Solana weekly inflow | CoinShares
At the same time, short-position liquidations are increasing. According to Coinglass data, traders have forcefully closed $4.92 million worth of short positions and $3.27 million worth of long positions.
When short liquidations outpace long liquidations it often signals bullish momentum. Note that forced buying from liquidated short positions can augment price rallies, potentially leading to a short squeeze.
Solana derivatives liquidations | Coinglass
Solana Price Analysis: SOL Recovers From Key Support
Solana price is in the middle of a trend reversal after tapping liquidity at $140 support strengthened by the 200-day Exponential Moving Average (EMA). A breach above the $150 level is anticipated in the American session, with bulls likely to follow through, extending the bullish leg toward $180.
Key profit targets include the confluence resistance at $155 formed by the 20-day EMA and the 50-day EMA, last week’s resistance at $160, and the weekly target of $180.
Solana price chart | Tradingview
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 stubborn sell signal from the Moving Average Convergence Divergence (MACD) suggests waiting for another confirmation before buying SOL. Should the 200-day EMA support fail to hold, Solana price could slide to $130 and $110 levels, respectively, in search of more liquidity.
The post Solana Price Bullish Streak Likely To Continue As SOL Sees $4.5M Inflows appeared first on CoinGape.
Filed under: News - @ August 12, 2024 3:51 pm