Solana Price Prediction: SOL On The Move Towards $100
The crypto market is witnessing a potential retracement, but Solana (SOL) is charting a distinct technical path that could drive the token to $100 before the arrival of Christmas or the New Year.
The competitive smart contracts token, valued at $37 billion in market capitalization, currently holds the fourth position after surpassing XRP. With just a minor $4 billion difference, Solana is poised to overtake Binance Coin (BNB) and secure the fourth spot among the largest cryptocurrencies.
Solana’s Current Trading Status
Solana is currently trading at $87 during US business hours, marking a 10% increase for the day and approaching the $90 threshold. The Relative Strength Index (RSI) supports the upward trend, indicating that Solana could be inching closer to the $100 mark in the coming days.
The factors contributing to Solana’s price rally include the Fear of Missing Out (FOMO), substantial institutional support, and a robust bullish market structure overall.
- Since mid-October, SOL has sustained its upward trajectory, experiencing only minor corrections that have proven highly profitable for investors.
- Institutional investors are actively channeling funds into Solana-related products, with the latest CoinShares weekly report revealing a significant influx of $21 million into altcoins, including Solana.
- Solana attracted the largest share of this inflow, with $10.6 million flowing into related funds, while Bitcoin and Ethereum witnessed outflows of $32.8 million and $4.3 million, respectively.
The overall bullish structure in the crypto market is supporting Solana’s price, encouraging traders to maintain long positions in anticipation of surpassing the $100 milestone.
While the RSI remains bullish, it is not excessively overbought, indicating that buyers currently have the upper hand. If traders refrain from taking profits and instead increase exposure to long positions, a breakout above $90 could trigger FOMO, propelling the token past $100.
In the event of declines and profit-taking, the 20-day Exponential Moving Average (EMA) at $71 serves as crucial support. Should losses intensify, the 50-day EMA (in red) and the 200-day EMA (in purple) would act as key levels to prevent further bearish developments.
