Solana’s SOL Token Surges as Coinbase Sees $1 Million Influx
The price of Solana’s SOL token has skyrocketed by over 50% in the past two weeks, and it seems that Coinbase is leading the way. Data from financial data firm Kaiko shows that nearly $1 million has flowed into SOL on Coinbase, indicating a strong interest from institutional investors. This influx of capital could potentially drive the token’s price even higher.
Coinbase Leads the Way
While other exchanges like Binance and Kraken have recently seen mixed signals in terms of investment, Coinbase has consistently shown positive trends for SOL. However, South Korea’s Upbit exchange has experienced a decline in SOL investments.
It’s important to note that Solana’s Relative Strength Index (RSI), which measures market momentum, suggests that the token is currently overbought. This typically precedes a market cool-off or correction. Historical patterns indicate that after such peaks in RSI levels, SOL could face a price pullback of between 35% to 50%. At present, SOL is valued at $39, with a slight dip in the past day but maintaining stability.
Waiting for Stability
For traders considering entering the market, it is advisable to wait for Solana to stabilize at a higher support level, ideally surpassing the $40 mark. This would help gather momentum for an anticipated upward movement towards the $50 threshold.
Hot Take: Solana’s Rising Popularity on Coinbase Drives Price Surge
The recent surge in Solana’s SOL token can be attributed to the significant influx of nearly $1 million on Coinbase. This indicates a growing interest from institutional investors and suggests that Solana may continue to experience a price surge. However, traders should be cautious as the Relative Strength Index suggests that the token is currently overbought, potentially leading to a market cool-off or correction. It is recommended to wait for Solana to stabilize at a higher support level before entering the market, aiming for the $50 threshold.
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