Solana Price Prediction: Why Buying SOL Is A Steal As Breakout To $140 Beckons

3 months ago 29

Solana price prediction: SOL is back to its enviable rallies, as it makes big strides toward the $125 peak in December. The last couple of weeks have been important to the competitive smart contracts token amid the flash drop to $80 in January. SOL currently has a market value of $117 backed by a 6% increase in market cap to $51 billion despite a slight drop in the 24-hour trading volume to $2.5 trillion, data by CoinMarketCap shows.

Solana Price Prediction: Can SOL Rise To $140 In February

Sentiment across the market has improved greatly in the last couple of weeks amid a noticeable interest from institutional investors seeking exposure to crypto through the spot Bitcoin ETFs.

As discussed, spot ETFs cumulative net inflow reached $4 billion on February 13. Despite a dismal start in January, these new investment products are proving to have an immense impact on the crypto market.

Increasing exposure means more money flowing into the market. At the same time, the uptake of the ETF is a validation of Bitcoin’s maturity and a positive influence on altcoin majors like Ethereum (ETH), Solana (SOL), XRP, and more.

Bitcoin price exploded above $50,000 for the second time this week following a brief drop to $48,000 on Tuesday after the release of the US CPI data. Although investors reacted to the disappointing results, which showed that inflation is still a factor of concern, they immediately bought the dip driving BTC toward $52,000.

Solana rallying in tandem with Bitcoin and other altcoins successfully dealt with resistance as highlighted by the 61.8% Fibonacci level to trade at $117 during US business hours on Wednesday.

The biggest bottlenecks on SOL’s upward trajectory are resistances at $120 — highlighted by the purple line on the chart, and the recent peak at $125. Once these hurdles are behind Solana, the chances of closing February above $140 would increase significantly.

Backing the positive technical structure is a buy signal from the Moving Average Convergence Divergence (MACD) indicator. Its position at 20 and the green histograms above the neutral area ensure that the uptrend is intact.

If Solana fails to break resistance at $125 in the next few sessions or days, traders can anticipate a minor reversal. Investors will likely start to cash out for profit, considering SOL’s impressive performance from support at $80 in January.

The region at $100 remains to be important to Solana and may once again function as support if dynamics in the market change and prices drop. SOL has a history of rewarding dips, hence, such corrections offer opportunities for dollar cost average (DCA).

The post Solana Price Prediction: Why Buying SOL Is A Steal As Breakout To $140 Beckons appeared first on CoinGape.

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