Solana (SOL) has emerged as one of the strongest bullish contenders in the last quarter of 2023. While Bitcoin (BTC) took a breather after reaching a new yearly high, Solana has managed to maintain its upward momentum.
During the months of September and October, Solana successfully broke through several resistance levels, including $25, $28, $30, and most recently, $35. This impressive performance has led to an 88% increase in price from September 1 to October 31, with a significant portion of the gains occurring in the last 30 days.
The Relative Strength Index (RSI) indicates that SOL is predominantly in bullish territory. Despite some signs of a potential reversal below $30, the RSI bounced off at 70, reinforcing the bullish outlook. Additionally, the presence of a bullish cross between the 50-day Exponential Moving Average (EMA) and the 200-day EMA further supports the positive sentiment among investors.
The occurrence of a bullish cross in SOL's price chart is reminiscent of a similar event in 2021, which marked the beginning of a previous bull run. If history repeats itself, Solana could be in for a remarkable rally.
While the outlook for Solana remains bullish, it is important to consider the possibility of a pullback to $30 before the larger breakout above $40. Traders should also be aware of potential resistance at $38.5, which could temporarily delay the breakout. However, once Solana surpasses $40, it is likely to experience a smooth climb towards $50, with a minor delay expected in the region between $45 and $46.
In terms of assets under management (AUM) inflows, Solana has emerged as the leader among altcoins. Last week, approximately $24 million flowed into Solana, making it the top choice for investors. Bitcoin also saw a significant increase in inflows, while Ethereum experienced outflows despite its price rise.
Solana's strong performance and bullish market structure make it a compelling choice for investors. With the potential for a remarkable rally and its position as a leader among altcoins, Solana is worth considering for those looking to capitalize on the crypto market's growth.
