Solana’s SOL token is on fire, soaring over 50% in the past two weeks. Coinbase is leading the charge, with data showing that nearly $1 million has flowed into SOL on the exchange. This suggests that institutional investors are taking a keen interest in Solana, which could fuel a further surge in the token’s price.
Here are all the details you’re looking for!
Coinbase Leads the Way
Data from Kaiko, a financial data firm, reveals that nearly $1 million has flowed into SOL on Coinbase, showcasing a consistent trend of positive investments. This trend on Coinbase stands in stark contrast to the mixed signals coming from other exchanges like Binance and Kraken, which have only recently shown a positive influx of capital.
Notably, South Korea’s Upbit exchange has witnessed a decline in SOL investments.
Coinbase’s appeal extends beyond individual investors; larger median order sizes hint at institutional players showing interest in SOL. The involvement of these institutional investors may be a key factor behind Solana’s current surge in value.
Also Read: Solana Price Analysis: Will SOL Price Hit $50 Soon?
Bullish Outlook for Solana
Notably, Arthur Hayes, the former CEO of BitMEX, has openly expressed his optimistic stance on Solana. He acquired SOL after it made a substantial recovery from its lowest point in the market, reflecting his confidence in the token’s potential.
Despite the current enthusiasm, it’s worth noting that Solana’s Relative Strength Index, which measures market momentum, suggests that the token is currently in an overbought state. This indicator often precedes a market cool-off or correction.
Looking Back
Historical patterns suggest that SOL could face a price pullback of between 35%-50% after such peaks in RSI levels. At the time of writing, SOL stands at $39, showing a slight dip in the past day but holding steady in the immediate hour.
For traders looking to enter the market, it’s advisable to wait for Solana to stabilize at a higher support level, ideally surpassing the $40 mark. This can help gather momentum for the anticipated upward movement toward the $50 threshold.
Also Read: Sam Bankman-Fried’s Past Ties to Solana Resurface During Criminal Trial