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Solana Poised for Liftoff: Institutional Investors Bet Big on SOL Crypto

Wed 08 May 2024 ▪ 3 min of reading ▪ by Fenelon L.
Event

The price of Solana (SOL) is on the cusp of breaking out from a double bottom pattern, indicating a potential 20% increase. The growing interest from institutional investors seems to be the main driver of this rally.

Solana takes off

The Wind Is Shifting in Favor of Solana

After a mixed first quarter in 2024, Solana is on track to regain momentum. This cryptocurrency, often touted as a potential “Ethereum Killer,” had somewhat lost the confidence of institutional investors. However, it appears to be regaining ground today.

According to the latest weekly report from CoinShares, SOL recorded inflows of $4.1 million for the week ending April 26. It’s excellent news, considering the limited inflows of $10 million since January.

This resurgence of interest from institutional investors could be the catalyst SOL needed. With its technological advantages and thriving ecosystem, Solana is once again drawing the attention of major players in the crypto market.

But institutional investors aren’t the only ones betting on Solana’s promising future. Retail investors also appear to anticipate an appreciation in the price. The evolution of the funding rate for perpetual contracts on SOL, which has recently turned positive and is steadily rising, is proof of this.

This setup reveals a predominance of long positions in the derivatives market, a strong signal that holders expect the bullish trend to continue.

A Promising Technical Setup

Beyond these favorable fundamentals, technical analysis also supports the hypothesis of an imminent uptick. Currently near $155, the price of SOL is just below a key resistance level at $156, which corresponds to the neckline of a double bottom reversal pattern observable on the charts for a month.

If Solana manages to break through this resistance zone, it could lead to a bullish acceleration, with a theoretical target of $187 according to the double bottom theory, representing a potential increase of 20% from current levels.

However, it is crucial to watch the $138 support level. A retreat below this threshold would question the bullish scenario and could push SOL down to $126 in case of a breakdown.

The tide seems to be turning in favor of Solana, which is benefiting from an influx of capital from both institutional and retail investors. If the double bottom configuration is confirmed, SOL could undergo a significant 20% rally in the upcoming weeks. Nonetheless, a failure below $156 would put this bullish scenario in doubt.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.