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Solana price prediction: The crypto market is on the verge of retracing but Solana (SOL) paints a different technical picture likely to propel the token to $100 before Christmas celebrations or the New Year.
The competitive smart contracts token worth $37 billion in market capitalization sits in the fourth position after toppling XRP. A minor $4 billion bump stands in the way of Solana displacing Binance Coin (BNB) and becoming the fourth-largest crypto.
Recommended for you: Solana (SOL) Now Worth More Than MSTR, HOOD, and DBX Combined
Solana Price Prediction: SOL On The Move As $100 Beckons
Solana is trading at $87 on Thursday during US business hours, up 10% on the day and riding towards $90. The Relative Strength Index (RSI) backs the uptrend, with Solana showing signs of narrowing the distance towards $100 in the next few days.
Solana’s price rally can be attributed to a few factors including the fear of missing out (FOMO), institutional support, and the general strong bullish structure across the market.
Since mid-October SOL has sustained the uptrend apart from minor corrections which investors have proved to be highly profitable, allowing them to enter long positions and capitalize on the continuing uptrend.
Institutional investors are also driving money into Solana-related products. According to the latest weekly report by CoinShares, altcoins saw $21 million in inflows into assets under management (AUM) with “the main beneficiaries being Solana, Cardano, XRP and Chainlink.”
Solana accounted for the biggest portion of the $21 million with $10.6 million flowing into related funds. Intriguingly, Bitcoin and Ethereum experienced fund outflows of $32.8 million and $4.3 million respectively. This showed that BTC and ETH are ceding ground to select altcoins like SOL, ADA, and XRP.
The commendable bullish structure within the crypto market is helping to keep Solana price buoyant and steady for further gains. Therefore, traders are willing to keep their long positions open aiming for the ultimate climb beyond $100.
Although the RSI is bullish, it is not extremely overbought which means that buyers have the upper hand. If traders refrain from taking profits at the moment but increase exposure to long positions in SOL, a breakout above $90 could trigger FOMO and blast the token past $100.
In case of declines taking center stage due to profit-taking, the 20-day Exponential Moving Average (EMA) (in blue) support at $71 would help to control the pullback. If push comes to shove and losses intensify, the 50-day EMA (in red) and the 200-day EMA (in purple) would come in handy to arrest the bearish situation.
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