With recent price developments, Solana may be poised for a significant rally in the coming days or weeks. Given the overall market rejuvenation, many bullish forecasts from seasoned cryptocurrency analysts indicate that Alternative currency You may be entering the next phase of the Taurus cycle.
The breakout paves the way for a bullish rally in Solana price
Solana The pair has faced increasing volatility in the past few days, sparking speculation of a deeper decline. However, there may be a shift in trend as crypto assets get hacked.
Looking at the SOL price performance in the one-day time frame, Rose Premium Signals, a technical analysis platform, Highlight The altcoin is exiting the downward channel. A breakout of SOL above the key pattern indicates a bullish reversal and resilience amid diminishing market conditions.
Given the recent rise in investor confidence and growth in network activity, this move could fuel bullish sentiment around Solana. If the momentum extends, it could push SOL towards New all-time highWhich makes the altcoin one of the best performing assets in the ongoing market cycle.
After the breakout, the platform noted that the 0.78 Fibonacci retracement level provided strong support. Meanwhile, SOL price is currently approaching the 0.618 retracement at the $197 mark. Hence, the support zone between $181.75 and $179.66 is crucial in determining the next path for digital assets.
The momentum should continue Sol It may touch the $254 level as a first target. Other higher key targets expected by the technical platform include $302 and $345 in the medium term. The Rose Premium Signal forecast may indicate that the current correction phase may be healthy, creating opportunities for new investors before SOL resumes its upward strength.
Significant capital inflow from SOL investors
Despite declining price performance, SOL’s Realized Net P/E metric indicated a long-term bullish sentiment among investors. Glassnode a report It shows that since early September 2023, Solana has consistently maintained positive net capital inflow, with barely minor outflows throughout this time frame.
This continued increase in capital flow confirms investors’ growing confidence in… Blockchain platform. It also highlights the growing adoption of the Solana ecosystem, driven by fast transaction speeds and low costs.
Glassnode noted that the development helped with this Promote growth And high prices. With the steady inflow, Solana reached a notable daily inflow peak of $776 million in new capital. This trend is seen as an optimistic signal for SOL’s price trajectory in the coming months.
Currently, SOL is trading at $188, indicating a decline of approximately 5% over the past 24 hours. A downward trend was also noted in the market capitalization and trading volume, which decreased by more than 4% and 22%, respectively.
Featured image from Unsplash, chart from Tradingview.com
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