- Bitcoin and Solana shared the major part of the spoils in a week that produced around $66 million in investment inflows.
- SOL’s bullish momentum was waning, indicating that the token could fall below $30.
For the fourth week in a row, digital asset investment products crossed over $60 million in inflows, according to CoinShares’ 23 October update. But unlike previous recent weeks, Bitcoin [BTC] was not the star of the show.
Read Solana’s [SOL] Price Prediction 2023-2024
Last week, Solana was king
Instead, Solana [SOL], whose price action has been soaring, got much more inflows than any other altcoin-related product. James Butterfill, who was the author of the report, disclosed that Solana registered $15.5 million in inflows. Other assets like Ethereum [ETH] and Litecoin [LTC] did not get anywhere close to the liquidity assigned to Solana.
Source: CoinShares
Bitcoin, as shown above, had $55.3 million in inflows. However, Butterfill noted that, despite the optimism around a BTC spot ETF approval, the inflows were low. This was because he compared the value to June when Blackrock announced that it was also joining the list of applications.
CoinShares, through Butterfill, explained that the reason the inflows were not as high was that the broader market seemed to be employing a prudent strategy so as not to get caught up in unfavorable circumstances. The report read,
“It suggests that the lower inflows this time round, despite the positive news from the Grayscale vs SEC court ruling, are indicative of investors adopting a more cautious approach this time.”
For Solana, the attention it now enjoys goes beyond its price action alone. A few months back, Solana was called a project that would no longer be relevant in the grand scheme of things. This was because of the ties it had with the now-collapsed FTX.
But one quick look at the blockchain’s performance in Q3 showed that a lot of hard work has been put into it. This was especially where Solana stood presently.
About time to take it slow
Price-wise, SOL has been the top gainer out of the top 10 assets per market capitalization. At press time, the token’s value increased by 26.29% in the last seven days. However, it could be time for SOL to take a break from the rally. This was indicated by the Moving Average Convergence Divergence (MACD).
Based on the SOL/USD four-hour chart, an intense sell-off may have begun. The price failed to beat the $30.69 resistance. As for the MACD, it fell to -0.05. The negative value of the MACD implies that downward momentum was increasing.
This trend was also confirmed by the 12-day EMA (blue) and 26-day EMA (orange). The orange dynamic line catching up with the blue indicates that sellers may soon take control of the market and the bullish bias could soon be neutralized.
Source: TradingView
Realistic or not, here’s SOL’s market cap in BTC terms
If selling pressure outpaces the buy orders, then SOL might drop to $26.74— a point that serves as support for the latest hike.