The price of Solana has surged more than 8% over the past week, breaking the critical $60 level. At the time of writing, Solana was trading 3% higher at $61.07. The total market capitalization of its assets rose to $25.9 billion last week, ranking it sixth.Day The biggest cryptocurrency since XRP. The total volume of SOL traded over the past day has decreased by 8%.
SOL’s Optimistic Clues
Solana’s price has been one of the best-performing cryptocurrencies this year amid continued growth. The “Ethereum killer” continued to impress investors throughout the year, fueled by a bullish resurgence. This has pushed the price of SOL up over 513% year to date. Institutional investors also shared their bullish sentiment, making Solana one of the most preferred altcoins.
In the week ending November 24, Solana recorded nearly $3.5 million worth of inflows, which is significantly more than the inflows of other altcoins combined. The asset’s monthly inflows were $40.2 million, lower than Ethereum’s $99.6 million inflows over the same period. Other altcoins, including Litecoin and Ethereum, have recorded significant outflows, making Solana almost half of DeFi. For institutions, this means Solana is currently the best-performing altcoin with a much higher long-term upside potential than other digital assets.
Notably, the Solana DeFi ecosystem achieved an important milestone earlier this week. Total value locked (TVL) hit an annual high of over $655 million, a significant increase of 211% since the $210.5 million TVL recorded at the start of the year.
Additionally, Solana boasts incredible transaction speeds of tens of thousands of transactions per second (TPS), surpassing Ethereum’s 15 TPS. ARK Invest CEO Cathie Wood recently praised the network’s efficiency and cost-effectiveness. In a CNBC interview on November 15, Cathie Wood described Solana Network as a significant infrastructure player within the broader blockchain ecosystem, comparing it to giants like Bitcoin and Ethereum.
“Ethereum was faster and cheaper than Bitcoin at the time. So we got Ethereum. Solana is much faster and more cost-effective than Ether,” Wood said.
Solana price outlook
Looking at the daily chart, we can see that Solana price maintains enough momentum for further price increases in the future. The digital asset has been hovering near its yearly highs over the past few days after breaking the critical level of $60. Price indicators indicate bullish potential, with the Relative Strength Index (RSI) hovering above the neutral line in a bullish zone. The Moving Average Convergence Divergence (MACD) indicator is also showing a shrinking red bar, indicating a bearish outlook.
Therefore, Solana price is likely to continue trading higher in the coming sessions as buyers gather momentum to push it to this year’s high of $68. A break above this level is likely to lead to an advance towards the next resistance level at $77.50. However, if the breach fails and the bearish momentum returns, Solana price could fall towards the immediate support at $51.30.
SOL price chart