Highlights:
Solana’s double-bottom pattern under $180 suggests a possible price rebound to $250.
Institutional interest in SOL surges with $156 million in weekly ETP inflows, spurred by speculation surrounding possible Solana ETF approvals.
Solana (SOL) has formed a potential double-bottom pattern on the daily chart beneath $180, indicating a possible price recovery toward $250 in the coming weeks.
Solana Bollinger Bands may initiate a recovery
Veteran chart analyst John Bollinger noted it might be “time to pay attention,” identifying potential W-bottom reversals in both Ether and Solana through his Bollinger Bands methodology.
This observation follows SOL’s decline near the $175 mark before stabilizing, hinting at a potential larger movement ahead.
Related: Solana’s founder introduces new perp DEX ‘Percolator’
Bollinger considers this to be a positive sign for Solana. The Bollinger Bands indicator analyzes standard deviations around a simple moving average to gauge likely price ranges and volatility.
Currently, Bollinger Bands are forming the second low of a W-pattern on the daily chart — a dual-bottom configuration followed by an upward breakout.
In this context, SOL’s drop to $172 on October 11 marked the initial low, with Friday’s dip to $174 as the second, testing the lower boundary of the Bollinger Bands.
If confirmed, Solana’s price could rebound from these levels, initially targeting the W-pattern neckline at $210, before reaching the projected target of $250.
“Solana appears to be in a favorable position, with the RSI approaching a momentum breakout and the MACD trending towards a bullish crossover,” stated crypto YouTuber Lark Davis in a post on X this Monday.
An accompanying chart illustrated SOL’s price forming a potential W (double-bottom) on the daily timeframe.
“The target price stands at $250 if the W confirms, contingent on a neckline breakout.”
The crucial factor now is for “bulls to maintain the 200-day EMA,” Lark Davis added.
As Cointelegraph has reported, a new upward trend will commence once buyers manage to push the price above the 20-day EMA, which currently stands at $200.
Investors increase their stake in Solana
According to data from CoinShares, institutional demand for SOL investment products seems to be on the rise.
During the week ending Friday, SOL exchange-traded products (ETPs) recorded weekly inflows of $156.1 million, bringing the year’s total inflows to $2.8 billion.
In contrast, global crypto investment products experienced net outflows of $513 million, with Bitcoin (BTC) seeing the bulk of the outflows, totaling $946 million last week.
James Butterfill, CoinShares’ head of research, commented:
“Hype surrounding Solana ETF launches has fueled inflows.”
The US Securities and Exchange Commission (SEC) is anticipated to make decisions on nine pending spot Solana ETF applications, which have been stalled due to government delays.
Approvals could release billions in institutional funding, 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 constitute investment advice or recommendations. Every investment and trading move carries risks, and readers should conduct their own research before making decisions.
