Month-long consolidation kicks Solana’s price up for $ 275


Solana’s pricing techniques (SOL) suggest that SOL may reach $ 275 in the next few sessions.

The upside outlook for the world’s sixth largest cryptocurrency by market cap comes as it consolidates in a range that resembles a Bull Pennant.

In detail, Bull Pennants are bullish continuation indicators that form as price consolidates into a symmetrical triangle-like structure following a strong bullish move.

The trend towards consolidation accompanies lower volumes, reflecting the underlying weakness of the trend.

And, as the price neared the top, the point where the trendlines of the Pennant converge, it tends to experience a breakout to the upside with the bullish target being in length equal to the height of the previous uptrend, c that is, Flagpole.

SOL / USDT Daily Price Chart with Bull Pennant Setup. Source: TradingView

Solana’s mast height is around $ 125. That said, a breakout move at the top of the Pennant (at around $ 150) gets SOL going for $ 275.

SOL / BTC pair also gains despite Bitcoin at $ 60,000

Solana’s outlook for reaching $ 275 comes amid an overall price spike in the crypto market.

However, SOL’s price has also risen 8% against Bitcoin (BTC) over the past two days, in part due to its listing on Upbit, South Korea’s premier crypto exchange.

Related: Solana Chart ‘Bull Flag’ Targets $ 250 Despite SOL Price Down 40% From Last Week

Overall, SOL was one of the top performing altcoins in 2021, with cumulative profits of 8,500%. SOL traded at a record high of $ 216 in early September.

Institutional inputs increase the price of SOL

Despite Bitcoin currently in the limelight, Solana’s price has likely also received a boost from institutional capital via dedicated investment funds, according to to a CoinShares report released earlier this week.

“Digital asset investment products saw inflows of US $ 500 million totaling US $ 226 million, bringing the 8-week entry streak to US $ 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 is not entirely turned to Bitcoin.

Institutional entries in crypto funds by asset. Source: CoinShares, Bloomberg

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.


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