Key Takeaways:
- Solana could hit a new record at $318, if the technical formation prediction pans out.
- NFT sales and investment inflow paint a bullish picture.
YEREVAN (CoinChapter.com) – Smart contract platform Solana (SOL) could be poised for additional gains after establishing a new all-time high of $235 in the Asian- Pacific session Wednesday. Technical indicators suggest another 40% uptrend underway and pin the target price at $318.
SOL in a bullish formation
SOL formed a Cup and Handle pattern after its Sep 9 peak. The price action moved in a U-shape since then, revisiting the said peak on Oct 24. The price action is then corrected in a descending channel for a week. The bowl-shaped portion of the pattern is dubbed ‘the Cup,’ while the setback portion is ‘the Handle.’
The Cup and Handle pattern predicts gains equal to the depth of the Cup, which places the target price at $318 for Solana.
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The relative strength index (RSI; the purple graph on the chart above) has been mainly charting between 50 and 70 in the past month. A strong RSI indicates traders’ high confidence in the asset. As a result, they are likely to invest, expecting more gains. Additionally, Solana’s ecosystem development and Ethereum’s rally could facilitate SOL’s success.
What’s pushing Solana?
Solana is the second-largest DeFi platform by TVL (total value locked). It takes the silver with $13,9 billion to Ethereum’s $173 billion gold. While there’s quite a difference between the two, Solana’s TVL hit an all-time high on Nov 3, as the network entered the top 5 cryptos with a market cap of $69 billion.
Moreover, the secondary sales volume for Solana-based NFTs has reached $500 million since August. While October sales are lower than the record September, Senior Research Analyst at analytical platform Messari asserted that “NFTs on Solana have seen formidable growth.”
The analyst tweeted more statistics on Nov 2 and singled out ‘Degenerate Apes’ as the most successful NFT project on the DeFi platform.
Additionally, according to a Weekly Fund Flow report by CoinShares, Solana was the third most attractive option for crypto investors after Bitcoin and Ethereum. The weekly inflows stood at $14.7 million, close to Ethereum’s $16.6 million.
NFT-sale statistics and an increase in fund inflow from investors paint a bullish picture for the DeFi platform. Moreover, Solana’s Cup and Handle formation could push SOL to new all-time highs in the upcoming sessions.
