Solana price can be about to an outbreak, because it has turned around an important level of resistance in support, supported by renewed demand from institutional investors.
Summary
- Solana Price has turned a historical resistance level to support.
- Smart Money investors have started collecting token.
- A multi -year cup and pattern has been formed on the weekly graph.
According to data from crypto.news, Solana (SOL) was traded on the $ 212.39 press, an increase of 10.6% compared to its low and more than 100% compared to its layer to date.
Token has shown several bullish signs that suggest that it could prepare for strong profit in the coming weeks.
On the weekly graph, Solana has converted the level of $ 204-206 into support, a level that has succeeded several times as important resistance several times over the past four years.
Data from Blockchain -analysis company Nansen reveal That smart money, that is, institutional traders who have a proven record of success seems to be an active part of the new accumulation trend.
Investments of Smart Money often stimulate the follow-up interest rate at retail traders, who tend to follow these movements when building their portfolios.
Derivatives facts Tell a similar story of pressure structure under the surface. The Solana Liquidity heat of CoingLass in recent days reveals a high density of short liquidations (yellow tires) that is clustered around the range of $ 213 – $ 219, just above the current price level. The Hittemap, on the other hand, is much cooler below the price, which suggests that fewer long positions with a risk of liquidation.
With the current market scenario that indicates that buyers put sellers under pressure, this setup can lead to a potential short squeeze, which speeds up the profit if Sol pushes higher in that zone.
In the meantime, investors are also being hyped about the possible launch of a Solana ETF in the US, especially now that the opportunities for approval have been significantly improved after the SEC decision to streamline the crypto ETF assessment process.
The launch of a SOL ETF would probably stimulate a significant demand from institutional traders, because it would offer regulated exposure to Solana and at the same time expand the market liquidity, factors that can stimulate persistent profit for token.
Technical indicators also seem to support the bull case for SOL price. On the weekly graph, the 20-day simple advancing average looks on a bullish crossover with the 50-day SMA, a sign of strengthening bullish momentum and the potential for persistent price winnings.
Solana Price is also close to attaching a multi-year cup and hand pattern, characterized by a U-shaped trough (the cup) followed by a smaller downward lever. In the technical analysis, when the price breaks out of a cup and hand pattern, it is often followed by persistent upward rallies.
At the time of the press, SOL only traded 20% under the neckline of the pattern at $ 260, which would confirm the outbreak. However, if SOL does not hold the support of $ 204, which also closely matches the 78.6% Fibonacci retracement level, the setup would be invalid.
The RSI is at 50 on the daily period, which means that there is still room for growth before it reaches overbought levels. In the meantime, the MACD line is slowly approaching a positive crossover that traders can regard as an early signal that the momentum goes back to the benefit of the bulls.
As such, SOL can continue to rise to $ 253 in the short term, which marks its High September.
Publication: This article does not represent investment advice. The content and materials on this page are only for educational purposes.
