Key takeaways:
-
Solana’s double-bottom below $180 signals potential price recovery to $250.
-
Institutional demand for SOL rises with $156 million in weekly ETP inflows, driven by hype for potential Solana ETF approvals.
Solana (SOL) price formed a potential double-bottom pattern below $180 on the daily chart, a setup that could help SOL price recover toward $250 in the weeks ahead.
Solana Bollinger Bands could lead to a recovery
Veteran chartist John Bollinger says it may be “time to pay attention,” spotting potential W-bottom reversals on Ether and Solana using his Bollinger Bands framework.
The call follows SOL price double-dipping near the $175 area before stabilizing, implying a bigger move may be in the cards.
Related: Solana founder brews up new perp DEX ‘Percolator’
This is an encouraging sign from Solana, according to Bollinger. The Bollinger Bands (BB) indicator uses standard deviation around a simple moving average to determine both likely price ranges and volatility.
Bollinger Bands are forming the second low of a W-shaped pattern formation — a double-pronged bottom followed by an exit to the upside — on the daily chart.
In this situation, SOL’s drop to $172 on Oct. 11 was the first bottom, and Friday’s drop to $174 was the second, retesting the lower boundary of the BB.
If confirmed, Solana’s price could recover from the current levels, first toward the neckline of the W-shaped pattern at $210, before rising toward the target of the prevailing chart pattern at $250.
“Solana is looking very constructive here, with the RSI nearing a momentum breakout and the MACD heading for a bullish cross,” said crypto YouTuber Lark Davis in an X post on Monday.
An accompanying chart showed SOL price forming a potential W (double-bottom) in the daily time frame.
“Price target here is $250 if the W confirms, which will happen on a neckline break.”
The key thing now is for “bulls to hold the 200-day EMA,” Lark Davis added.
As Cointelegraph reported, a new uptrend will begin once buyers drive the price above the 20-day EMA, currently sitting at $200.
Investors increase exposure to Solana
Institutional demand for SOL investment products appears to be increasing, according to data from CoinShares.
SOL exchange-traded products (ETPs) posted weekly inflows of $156.1 million in the week ending Oct. 17, bringing their inflows for the year to $2.8 billion.
Conversely, global crypto investment products recorded net outflows of $513 million, with investors particularly de-risking from Bitcoin (BTC), the only major asset to see outflows totaling $946 million last week.
CoinShares’ head of research, James Butterfill, said:
“Hype for the Solana ETF launches drove inflows.”
The US Securities and Exchange Commission (SEC) is expected to decide on nine spot Solana ETF applications, which have been delayed by the government lockdown.
Approvals could unlock billions in institutional capital, as seen with REX-Osprey Solana Staking ETF, SSK, which debuted on July 2 with over $33 million in first-day volume.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
