Solana (SOL) price is shaping up to be one of the strongest bullish contenders in the final quarter of 2023. Although “Uptober” started with Bitcoin (BTC) surpassing $30,000 and trading at a new yearly high at $35,000, the largest cryptocurrency took a breather such that it consolidated gains above $34,000.
On the other hand, Solana managed to dispel the negative sentiments, which have been calling for a correction since SOL climbed above $30. Not even reports on the struggling crypto exchange FTX transfers millions of funds into SOL and other tokens were able to stop The Solana rallywhich appears very close to surpassing critical resistance at $40.
Solana Price Prediction: Assessing the Bullish Market Structure
In two consecutive bullish months, September and October, Solana managed to overthrow immense resistance at $25, $28, $30, and most recently at $35.
The smart contracts token rose 88% between September 1 and October 31, with 56% of the gains accumulated over the past 30 days alone exchanging hands at $36.
Based on the Relative Strength Index (RSI) position, SOL is mainly in bullish hands. There were telltale signs of a reversal below $30 last week, but the RSI rebounded to 70, accentuating the bullish picture that encouraged traders to keep their buy positions open.
An accumulation drive at $30 allowed the bulls to create the momentum needed to resume the uptrend and revive. Solana Price above $35.
The presence of a bullish crossover also played a significant role in reinforcing the positive sentiment among investors who now believe that SOL is on the path to recovery not only to $40, but is also targeting $50 in the near term.
A golden cross occurs after a short-term moving average exceeds a long-term moving average. For example, in the case of SOL, the 50-day exponential moving average (EMA) (red) crossed above the 200-day EMA (purple) on October 22, which helped validate the uptrend.
The last time Solana exhibited such a bullish crossover was in 2021, ushering in the previous bull run in which SOL hit a new all-time high at $260 in November of the same year.
Therefore, if history is to repeat itself, as is common in the markets, the price of Solana could see a remarkable rise.
Nonetheless, it is worth considering the possibility of a pullback to $30 before SOL initiates a bigger breakout above $40. Traders may want to keep in mind potential resistance at $38.5, which could delay the breakout. Above $40, Solana price will likely climb smoothly to $50 with a brief delay likely in the $45-46 region.
Solana leads Altcoins in AUM inflows
Funds flowing into crypto investment products increased to $326 million last week. According to Coin Shares which monitors assets under management (AUM) in the sector, this is the largest inflow since July 2022.
Bitcoin was the biggest winner, with a 90% increase in inflows to $296 million, driven by optimism over the potential approval of BTC Spot Exchange Traded Funds (ETFs).
Among altcoins, Solana was the undisputed king, accounting for around $24 million of total crypto inflows, followed by Litecoin with $0.5 million and XRP with $0.2 million.
Despite Ethereum price rising above $1,800, related weekly outflows increased to $6 million. Cardano and Tron remained unchanged, experiencing neither entry nor exit.