Important points:
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Solana’s double-dip below $180 suggests the price could recover to $250.
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Hype over possible Solana ETF approval has increased demand for SOL by institutional investors, with $156 million in weekly ETP inflows.
Solana (SOL) price is forming a potential double bottom pattern below $180 on the daily chart, which could help SOL price recover towards $250 in the coming weeks.
Solana Bollinger Bands could lead to recovery
Veteran chart expert John Bollinger used the Bollinger Band framework to point out the possibility of a W-bottom reversal in Ether and Solana, saying, “Maybe it’s time to pay attention.”
This call follows SOL price hitting a double-dip near $175 before stabilizing, suggesting a bigger move could be on the cards.
Related: Solana founder develops new Perp DEX “Percolator”
Bollinger said this is an encouraging sign from Solana. The Bollinger Bands (BB) indicator uses the standard deviation around a simple moving average to determine both the possible price range and volatility.
Bollinger Bands are forming the second low of a W-shaped pattern formation (a bifurcated bottom followed by an exit to the top) on the daily chart.
In this situation, SOL’s fall to $172 on October 11 was the first bottom, and Friday’s fall to $174 was the second, testing the BB lower bound again.
If confirmed, Solana price could recover from current levels, first toward the W-shaped pattern neckline at $210, and then move higher toward the prevailing chart pattern target at $250.
“With the RSI nearing a momentum breakout and the MACD heading towards a bullish cross, Solana looks very constructive here,” crypto YouTuber Lark Davis said in an X post on Monday.
The attached chart shows that SOL price is forming a potential W (double bottom) on the daily time frame.
“If Mr. W confirms, the price target here will be $250, which will materialize at the neckline break.”
What is important now is for “the bulls to hold the 200-day EMA,” Lark Davis added.
As reported by Cointelegraph, a new uptrend will begin if buyers push the price above the 20-day EMA, currently located at $200.
Investors increase exposure to Solana
According to CoinShares data, institutional demand for SOL investment products appears to be increasing.
SOL exchange-traded products (ETPs) recorded weekly inflows of $156.1 million for the week ending October 17, bringing total inflows for the year to $2.8 billion.
Conversely, global crypto investment products recorded net outflows of $513 million, with investors specifically taking risk away from Bitcoin (BTC), the only major asset with confirmed outflows last week, totaling $946 million.
James Butterfill, head of research at CoinShares, said:
“The hype around the Solana ETF launch drove inflows.”
The U.S. Securities and Exchange Commission (SEC) is expected to decide on spot applications for nine Solana ETFs, which have been delayed due to government lockdowns.
Approval could free up billions of dollars in institutional capital, as seen in SSK, the REX-Osprey Solana Staking ETF, which debuted on July 2 and had first-day volume of more than $33 million.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
