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The price of Solana surpassed the psychological level of 200 USD during the trading session on January 2. During this extended rally, the Pump.fun platform transferred large volumes of SOL Tokens to Kraken.
Although exchange inflows typically indicate a bearish sentiment due to potential selling pressure, the bullish momentum in Solana’s recovery remains strong and resists these usual negative trends.
Solana Recreates Upward Momentum After Large Deposits
According to data from SolscanPump.fun made two large deposits to Kraken on January 1. The first transfer, worth 22.8 million USD in SOL, took place at 16:37 UTC, followed by the 2nd deposit worth 32.7 million USD at 17:45. Additionally, on-chain data revealed that on January 2, the Solana-based platform, designed to easily create and trade memecoins, deposited 63,171 SOL ($13.11 million) into Kraken.
Typically, a sharp increase in exchange inflows is often a bearish sign and is often a harbinger of a price decline. However, SOL has seen an increase in demand to absorb this increased supply. Therefore, since January 1, its price has maintained an upward trend.
In fact, during the January 2 trading session, SOL broke through a parallel descending channel it had been trading in since November 23. This channel consists of two descending parallel resistance levels that form as the price of a assets decrease.
When the price of an asset crosses the upper border of the channel, it signals a potential reversal to bullish momentum, indicating that the asset may experience an increase in price.
Furthermore, SOL price broke above its 20-day exponential moving average (EMA), confirming an increase in demand for the altcoin. The 20-day EMA measures the average price of an asset over the last 20 trading days. It prioritizes more recent prices, making it more sensitive to price fluctuations than a simple moving average.
When the asset’s price crosses above the 20-day EMA, this indicates a shift to bullish momentum, indicating a potential uptrend as market sentiment becomes more positive.
SOL Price Prediction: Altcoins Could Break All-Time Highs
On the daily chart, indicators from SOL’s Moving Average Convergence Divergence (MACD) support this bullish outlook. At press time, the coin’s MACD line (blue) is above its signal line (orange). To clarify, this bullish crossover took place on January 1, when Pump.fun started sending coins to Kraken.
When an asset’s MACD is established in this way, it implies bullish price momentum. This means the asset’s price can continue to rise when short-term price action is stronger than the long-term trend.
If this holds, SOL’s price could break above the resistance at $219.31 and reclaim its all-time high of $264.63. Conversely, an increase in selling would invalidate this bullish outlook, curbing the upward momentum of Solana’s price. In that case, the price of SOL could drop to $189.24.
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