Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million, marking a substantial increase of 211% since the $210.5 million TVL recorded at the start of the year.
Additionally, Solana boasts a remarkable transaction speed of tens of thousands of transactions per second (TPS), surpassing Ethereum’s 15 TPS. ARK Invest CEO Cathie Wood recently extolled the network for its efficiency and cost-effectiveness. During a CNBC interview on November 15, Cathie Wood described the Solana network as a significant infrastructure player within the broader blockchain ecosystem while comparing it to bigwigs like Bitcoin and Ethereum.
“Ether was faster and cheaper than Bitcoin in the day — that’s how we got Ether. Solana is even faster and cost-effective than Ether,” Wood said.
Solana Price Outlook
The daily chart shows that the Solana price has been maintaining enough momentum for further price increases in the future. The digital asset has been hovering near its yearly high over the past few days after breaching the critical level of $60. The price indicators point to a potential bull run, with the Relative Strength Index (RSI) hovering above the neutral line in the bullish zone. The Moving Average Convergence Divergence (MACD) indicator also notes receding red bars, suggesting a waning bearish outlook.
Therefore, the Solana price will likely continue to trade higher in the ensuing sessions as buyers gather momentum to push the price higher to this year’s high at $68. A break above this level could unlock a potential rally to the next resistance level at $77.50. However, if the breach fails and bearish momentum picks up, the Solana price could decline toward the immediate support at $51.30.
SOL Price Chart
