Solana Sets Sights on Revisiting 60 Dollars, but the Prerequisites are Worth Noting

Crypto News– On November 28, Solana (SOL) revisited the $58.47 mark, aligning with the overall upward trend observed in the broader market. This surge can be attributed to Bitcoin’s (BTC) initial surge beyond $38,000 on the same day.

Although Bitcoin has retraced from this level, SOL once again emerged as the top gainer among the top 10 cryptocurrencies by market value. According to the SOL/USD 4-hour chart, the cryptocurrency successfully turned the $53.93 level into a support.

Solana Sets Sights on Revisiting 60 Dollars, but the Prerequisites are Worth Noting

While on its upward trajectory, SOL encountered resistance at $56.31. However, with bulls dominating the market, SOL managed to surpass this barrier, setting its sights on a new weekly high. Indicators like the Relative Strength Index (RSI) suggest the potential for further upside.

The Rise of Bulls Spells the End for Bears

As of the latest update, the Relative Strength Index (RSI) stands at 60.22, significantly above the neutral 50.00 mark, signaling a robust bullish momentum for SOL. If this positive buying trend persists, coupled with a diminishing bearish presence, there is potential for SOL to undergo a retest at the $60 level.

Examining the Moving Average Convergence Divergence (MACD) reinforces the optimistic outlook, indicating a prevailing upside potential over a potential downward slide. This conclusion is drawn from the MACD crossing into positive territory.

However, achieving the $60 target or beyond for SOL requires the 12-day Exponential Moving Average (EMA) in blue to surpass the 0.14 reading, while the 26-day EMA in orange should continue its presence in the red area, confirming the upward trend.

SOL Captures Institutional Attention

Beyond the technical analysis, the macroeconomic perspective unveils a significant surge in institutional interest in Solana and associated products. At a certain juncture, CoinShares, the digital asset investment group, reported that the capital influx into Solana investment products nearly surpassed that of Bitcoin. According to CoinShares’ Digital Asset Fund Flow report released on November 28, SOL emerged as the altcoin, alongside Ethereum (ETH), with the highest proportion of inflows.

The report highlighted a weekly influx of $3.5 million into Solana investment products, signaling a noteworthy increase in institutional participation. This suggests that it’s not just retail investors closely monitoring SOL’s movements. If institutional capital continues to pour into Solana, there’s a plausible chance that the cryptocurrency could achieve a new Year-To-Date (YTD) high.