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Solana is Outpacing Ethereum! When will the SOL Price Breakout?

Written by: Mustafa Mulla

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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Nov 2, 2021

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The price of SOL coin is now experiencing a strong upward trend and may soon reach a new high. The market dominance of SOLANA tokens, as well as the market cap, is on the rise and might soon reach new highs. While it will most certainly face some opposition along the way, the aim remains attainable as long as the bulls can hold the $200 support zone. 

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Solana has risen to this position as a result of a series of events. The Total Value Locked or TVL numbers for Solana, which have surged, are probably the most crucial.

Bitcoin received the most love from institutional investors, according to CoinShares’ weekly report, with $268.6 million invested. Ethereum, which had $16.6 million in inflows this week, was eagerly following this event. 

Surprisingly, the Ethereum-killer garnered only $1.9 million less than ETH, indicating that Solana is swiftly gaining traction among institutional investors. Furthermore, SOL’s month-to-date inflows are roughly $36.4 million, outpacing ETH’s $0.7 million outflows.

Solana Price Action

The Solana price’s weekly technical signal indicates a weak negative trend in the near future. SOL price is exhibiting a mild rising momentum on the daily chart. While heading upwards, the resistance zone for Solana can be spotted near $225. Meanwhile, the coin’s support may be found near $120. The price of the currency is currently trading above the 50 and 100 Day Moving Averages.

The 50MA line, which is at $160, is behaving as a temporary price bounceback region. The coin has developed a strong parallel channel and is expected to reach a new high in the near future. If the price rises 15 to 20% over its current level, a surge to $250 is possible.

If the price of Solana fails to break over the $216 resistance level, it will imply that the consolidation phase, also known as the handle, will take some time to develop. While this isn’t necessarily negative, it does give buyers another opportunity to push SOL higher. 

A daily closing below $178 will result in a lower low, invalidating the bullish Solana price thesis. In this case, SOL is expected to go below the $166 support level. It will seek to break through the $216 barrier once more.

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Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

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