Solana (SOL) price is showing strength amid a weak Bitcoin price action. The smart contract cryptocurrency is experiencing increased selling pressure after a strong surge at the start of the month. Technical analysis is pointing towards a bounce in SOL crypto soon.
BTC price showed a negative price action during the first two days of the week. The cryptocurrency failed to break above $27,700. On Wednesday, BTC dropped below $27,000 before the bulls pushed it back above the key level. This resulted in a decreased investor interest in the altcoins as the markets experience a low trading volume. At the time of writing, the SOL price stood at $22.01, after a slight recovery from weekly lows of $21.50.
Solana Leads In the Institutional Inflows
According to a recent report from Coinshares, cryptocurrencies have just experienced their best week in terms of institutional inflows since July 2023. In the past 1 week, the digital asset markets have received $78 million of fresh capital.
Solana emerged as the leading altcoin in the report as it received $24 million worth of inflows. This was the highest inflow for the native asset of the Solana ecosystem since March 2022. It also explains the positive SOL price action in the past few weeks.
SOL/BTC Tumbles 10%
After a strong rebound from the September lows, the SOL/BTC pair faced a rejection from the 0.0009 level. However, even after a 10% correction from last week’s high, the pair remains 18% up from the September lows. The weakness in altcoin’s Bitcoin pair often translates into even a major sell-off in the USD pair.
The line in the sand for me on the SOL/BTC pair is the 0.00075 level, where lies the 200-day moving average. In case of a breakdown below the key moving average, Solana price prediction will flip bearish for me. Right now, the pair is trading above this indicator, and the outlook remains positive.
Solana TVL Rises In 2023
The following TVL chart shows that the total locked value on the Solana blockchain has been constantly increasing since the start of 2023. During this time, the layer 1 platform has seen almost a 60% increase in the TVL.
The total locked value (TVL) can be taken as a measure of the on-chain activity and adoption of a smart contract platform. It refers to the amount of funds locked by the users in different DeFi protocols on a particular blockchain.
Solana Price Technical Analysis
SOL to USD pair is up 26% from its September lows. However, in a shorter timeframe, bears have stepped in once again. Earlier this week, the price faced a rejection from the middle of the long-term range. The next key retest to watch will be the 200 MA, which is around $21.04.
Another thing worth mentioning here is the fact that the SOL price has made a higher high on the daily chart, which has put a retest of the range highs around $27 on the cards. The upcoming release of September CPI data, which is set to be released later this week, will also be crucial for future price action of digital assets.
The post Solana Price Prediction: SOL Bulls Target $27 In October appeared first on Analytics Insight.
Source: https://www.analyticsinsight.net/solana-price-prediction-sol-bulls-target-27-in-october/