The technical analysis of the Solana (SOL) price suggests that SOL may hit $ 275 in the coming sessions.
The bullish outlook for the world’s sixth largest cryptocurrency by market capitalization comes as it consolidates within a range that looks like a Bull Pennant.
Specifically, Bullish Flags are bullish continuation indicators that form as price consolidates within a symmetrical triangle-like structure after a strong bullish move.
The consolidation trend accompanies the decline in volumes, reflecting the underlying weakness of the trend.
And, as the price approaches the cusp, the point where the trend lines of the flag converge, it tends to break to the upside., with the bullish target at a length equal to the height of the previous uptrend, that is, flagpole.
The height of the Solana flagpole is approximately USD 125. That being said, A breakout move at the cusp of the band (around $ 150) puts SOL on its way to $ 275.
The SOL / BTC pair is also winning even though Bitcoin is at the $ 60,000 level
Solana’s prospects of hitting $ 275 come amid a general price boom in the cryptocurrency market.
Nevertheless, SOL’s price also rallied 8% against Bitcoin (BTC) in the past two days, in part due to its listing on Upbit, South Korea’s major cryptocurrency exchange.
Usually, SOL has been one of the best performing altcoins in 2021, with its gains to date at 8,500%. SOL was trading at a record $ 216 in early September.
Institutional entries drive the price of SOL
Even though Bitcoin is currently in the spotlight, Solana’s price likely also received a boost from institutional capital through dedicated investment funds, according to a CoinShares report published earlier this week.
“Digital asset investment products posted 500 inflows for a total of $ 226 million, bringing the 8-week inflow streak to $ 638 million,” CoinShares noted, adding:
“It was a mixed picture in other altcoins with recent favorites Solana ($ 12.5 million) and Cardano ($ 3 million) continuing to see inflows, suggesting that the focus has not been completely shifted to Bitcoin.
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