YEREVAN (CoinChapter.com) — Solana (SOL) price jumped 6% to nearly $103 on Jan. 30, but why is Solana price up today? What propelled SOL 30% in a week? Here is a breakdown of the reasons behind the uptrend and the possible price targets for the altcoin.
Why is Solana Up Today?
Solana price takes its bullish cues from a flurry of factors, including the overall sentiment on the crypto market. Thus, Bitcoin’s (BTC) price recovery above $43,000 cannot be underestimated in understanding why Solana’s price is up today. There’s a clear correlation!
Additionally, the crypto market saw significant fund outflow in the previous week. Bitcoin outflows led the pack to a $480 million loss. However, SOL inflows stood out, partially answering why Solana is up today.
According to the latest CoinShares report, in the week ending Jan. 28, Solana fund influx equaled $3 million against a whopping $38.8 million Ethereum outflow. Notably, the Solana inflow did not negate previous outflows but marked a shift in the bullish direction.
SOL Trading Volumes Near Record High
As mentioned, Solana led the cryptocurrency market with substantial inflows. Thus, it is important to look at the DeFi platform’s ecosystem closely and see what attracted the investors.
According to on-chain tracker DeFiLlama, Solana’s trading volumes receded from the December record high. However, the metric maintained a high value throughout January and stood near $800 million. The total value locked (TVL) reached its 14-month high, just above $1.95 billion, on Jan. 30.
All twenty leading protocols contributed to the rising TVL with double-digit gains, including Jito (JTO), a project that launched its Airdrop on Dec. 7, gaining considerable traction. Most of the top 10 protocols bagged double-digit gains in the previous week.
SOL Technical Analysis December 2023
As a result of the mentioned Solana inflows, SOL emerged as the largest winner on Jan. 30 among the top 10 assets. In detail, the altcoin blew past a former resistance on Jan. 28, which capped the token’s bullish attempts since the local peak on Dec. 25.
The mentioned resistance was part of a formation known as the ‘bull flag,’ which promises more gains for SOL in the coming sessions.
A bull flag formation is a chart pattern that occurs during an uptrend when the price consolidates in a narrow range, forming a rectangular shape that resembles a flag. It’s characterized by a sharp rise in price (the flagpole), followed by a sideways or slightly downward consolidation (the flag).
To calculate the target price, traders measure the height of the flagpole and project that distance upward from the point where the price breaks out of the flag. Thus, the target price for SOL would stand at $133.
Conclusion
Solana inflows testify to a bullish continuation ahead. However, it is important to note that SOL price does not exist separate from the rest of the market. As a high-market cap altcoin, Solana is susceptible to price volatility from large players like Bitcoin and Ethereum.
Thus, potential Solana investors should watch macro factors closely, keeping an eye on local developments on the blockchain. As of Jan. 30, Solana’s market cap dominance stood near its 20-month high at 3%.
