What is happening
Solana has experienced significant growth of 20% over the past seven days. On Friday, the cryptocurrency blew up as much as 8.5%.
Since mid-April, it has traded within a broad range, finding support at $115 and facing resistance at $188.
Source: CoinMarketCap
Recently, Solana has broken through the 100 and 50 EMA resistance levels and maintained its position above the 50 EMA on the daily chart, indicating strong market performance.
Crypto analyst Ali Martinez highlights that Solana is forming a W pattern, suggesting a potential bull run. The pattern indicates the price bottomed out around $123 twice, positioning Solana for a major rebound toward the $174 level.
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Solana ETFs on way?
The upcoming launch of the first spot Ether exchange-traded funds (ETFs) is set to open the door for additional crypto exchange-traded products, including a potential Solana-based ETF.
According to Eric Balchunas, a senior ETF analyst at Bloomberg, the introduction of these Ether ETFs will likely lead to more crypto ETFs based on Ether and SOL. Balchunas expressed this expectation in a July 15 X post.
haha, i'm understand and appreciate the openness.. but keep in mind after launch there's flows and then add'l eth products i'm sure, then solana, and then.. it's prob never going to end. The dam has broken
— Eric Balchunas (@EricBalchunas) July 15, 2024
Price analysis
A bullish triangle pattern is forming on Solana's chart, historically indicating a potential breakout and significant price movement.
Ali Martinez identified the $162-$164 resistance range as a crucial barrier for Solana. If SOL breaks through this range, the next target might be $175.
Source: Ali/X
As of now, SOL is traded at around $169. The $163 support level is key in the next few days.
If it cannot sustain the resistance level, it could drop to as low as $141-143.
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The growing buying pressure following the breakout above the 100 EMA indicates investor optimism about Solana's prospects. If Solana breaks through the crucial resistance level around $170, it could lead to further gains.
