Key takeaways:
Solana’s double-bottom below $180 suggests potential recovery to $250.
Institutional interest in SOL is growing, with $156 million in weekly ETP inflows, fueled by excitement around anticipated Solana ETF approvals.
The price of Solana (SOL) has established a potential double-bottom pattern beneath $180 on the daily chart, setting the stage for a bullish movement toward $250 in the upcoming weeks.
Solana Bollinger Bands may indicate recovery
Charting expert John Bollinger noted that it could be “time to pay attention,” identifying possible W-bottom reversals on both Ether and Solana using his Bollinger Bands methodology.
This observation follows SOL’s drop to the $175 area before stabilizing, suggesting a significant movement could be imminent.
Related: Solana founder launches new perp DEX ‘Percolator’
Bollinger asserts this development is promising for Solana. The Bollinger Bands (BB) indicator employs standard deviation around a simple moving average to define probable price ranges and volatility.
The Bollinger Bands are exhibiting a second low in a W-shaped pattern — a double-bottom setup expected to break upward — on the daily chart.
In this context, SOL’s drop to $172 on October 11 was the initial bottom, while Friday’s decline to $174 marked the second, testing the lower boundary of the BB.
If confirmed, Solana’s price might rebound from current levels, first aiming for the neckline of the W-pattern at $210, before progressing toward the $250 target as specified by the chart pattern.
“Solana appears to be in a strong position right now, with the RSI approaching a momentum breakout and the MACD nearing a bullish cross,” noted crypto YouTuber Lark Davis in a recent X post.
An accompanying chart illustrated SOL price forming a potential W (double-bottom) in the daily timeframe.
“Price target here is $250 if the W confirms, which will happen on a neckline break.”
The crucial factor now is for “bulls to maintain the 200-day EMA,” added Lark Davis.
As reported by Cointelegraph, a new uptrend is likely to commence once buyers push the price above the 20-day EMA, currently positioned at $200.
Investors boost exposure to Solana
According to data from CoinShares, institutional interest in SOL investment products seems to be on the rise.
SOL exchange-traded products (ETPs) experienced weekly inflows of $156.1 million for the week ending Friday, bringing total inflows for the year to $2.8 billion.
In contrast, global crypto investment products noted net outflows of $513 million, with investors particularly withdrawing from Bitcoin (BTC), the only major asset that saw outflows totaling $946 million last week.
James Butterfill, CoinShares’ head of research, stated:
“Excitement over Solana ETF launches stimulated the inflows.”
The U.S. Securities and Exchange Commission (SEC) is expected to announce decisions on nine spot Solana ETF applications, which have faced delays due to government closures.
Approvals could release billions in institutional capital, similar to the REX-Osprey Solana Staking ETF, SSK, which launched on July 2 with over $33 million in first-day trading volume.
This article does not offer investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making a decision.
