Solana has made a significant price increase, breaking the $200 psychological level, suggesting that it is starting to attract investor interest again.
The increase in SOL tokens transferred from the Pump.fun platform to Kraken may indicate a change in market dynamics, however, despite the generally negative signals from flows within the exchange.
“The bullish MACD pattern suggests that SOL could face resistance at $219.31 and is likely to move towards a new all-time high of $264.63,” a COINOTAG analyst noted.
Solana’s price has the potential for further gains towards new all-time highs, surpassing the $200 level amid rising demand and significant inflows on exchanges.
Solana Surpasses $200 on Rising Demand and Investments
On January 2, Solana’s price surpassed the $200 level after the Pump.fun platform transferred a large amount of SOL tokens to Kraken. This sharp rise demonstrates the growing interest in the altcoin and has attracted significant attention in the crypto community.
Typically, a significant increase in flows within the stock market can create a negative outlook as it can lead to selling pressure. However, Solana’s recent performance has reversed this trend, showing strong bullish momentum.
Notably, on January 1, a total of over $55 million worth of SOL was deposited into Kraken, according to Solscan data. On January 2, a deposit of 63,171 SOL worth approximately $13.11 million was made, supporting the bullish narrative.
The breakout of the upper limit of the long-standing declining channel has been a major factor in this bullish trend. Breaking the upper limit of a channel is usually an indicator of a bullish price move. This momentum has allowed SOL to break above its 20-day Exponential Moving Average (EMA), once again showing that demand for the cryptocurrency is increasing. The breakout above the EMA signals a positive shift in market sentiment.
Solana’s Future: Aiming for New Heights
Indicators from the Moving Average Convergence and Divergence (MACD) analysis reinforce the optimistic sentiment around Solana. The MACD line is above the signal line, indicating that short-term price momentum is stronger than long-term trends.
This bullish scenario suggests that SOL’s price could face strong resistance at $219.31 and retarget the all-time high of $264.63. However, a significant sell-off could thwart this bullish scenario, so traders should be cautious about price corrections.
The bullish trend in SOL’s price continues due to sustained demand and positive market conditions. Investors are advised to closely monitor the dynamic market conditions and be prepared for possible changes.