​​SOL Soars 38% in a Week: Will Solana’s Bullish Run Continue?

The crypto market has recently witnessed a surge in bullish sentiment, propelling prices to new heights. Among the standout performers, Solana, a popular layer one blockchain project, has captured the attention of investors worldwide.

Since October 15, Solana has seen its value increase by over 38%, peaking at $30 for the first time since the November 2022 market turmoil.

SOL/USD 7-day price chart (source: CoinStats)

Solana was valued at $31.02 at press time despite a slight pullback from its weekly high. The last time Solana touched the $30 mark was during the collapse of FTX, making its recent performance even more notable.

Analyzing the Factors Behind Solana’s Rise

Several factors contribute to the heightened interest in Solana. Trading volumes have surged, and Solana’s total value locked in DeFi has shown a significant uptrend, indicating increased investor confidence.

Solana:

1. Is now 1% higher than pre-FTX levels from 1 year ago

2. Reached new 2023 highs in TVL today

3. Reached new ATH in Hackathon participants

4. Has outperformed ETH by 100% since June

5. Is outperforming BTC even with a Spot ETF narrative.

Solana is 10x better at $28…

— Gumshoe (@0xGumshoe) October 21, 2023

The community’s growing excitement is evident, with social dominance metrics from Santiment highlighting a spike in discussions around Solana. High trading volumes amid an uptrend usually signal a bullish trend, showcasing sustained interest even as prices rise.

However, not all reactions from the crypto community are positive. Some investors express skepticism, pointing out that Solana’s previous price rally had strong ties to FTX. They question whether the asset will experience the same buying pressure in the next bull run.

Nevertheless, prominent voices within the financial space, such as economist Raoul Pal, have maintained a bullish stance on Solana throughout the year.

$SOL – Ive been extremely bullish all year.

It’s up 171% this year and we are about to test the big inverse head and shoulders at $30…. next major resistance would likely be $50, once confirmed. 1/ pic.twitter.com/2I0l92xFTR

— Raoul Pal (@RaoulGMI) October 20, 2023

Despite some lingering doubts and Solana’s checkered past marked by network outages and a significant price drop, the prevailing sentiment remains overwhelmingly positive. Investors and community members continue to rally behind Solana, showcasing its resilience and potential for growth.

SOL/USD Technical Analysis

The Chaikin Money Flow (CMF) rating of 0.14 on the SOLUSD price chart indicates that the market’s bullish momentum is strong. The CMF indicator evaluates the volume of buying and selling pressure in a market, and a rating of 0.14 implies that there is more buying pressure than selling pressure.

This pattern implies that SOLUSD is in high demand, which might lead to additional price hikes soon. If the CMF rating goes below zero and into negative territory, it may suggest a change in market mood and a probable decline in purchasing pressure.

The stochastic RSI trending northwards with a value of 34.65 indicates that the SOLUSD market is now under modest buying pressure. This pattern suggests there is still space for the price of SOLUSD to rise. However, if the stochastic RSI rating rises and hits overbought levels over 70, it may indicate a probable reversal in purchasing pressure and a price correction for SOLUSD.

SOL/USD 4-hour price chart (source: TradingView)

In conclusion, Solana’s recent surge and positive sentiment indicate strong potential for further growth, backed by increasing investor confidence and bullish technical indicators.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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