Solana (SOL) has been showing signs of optimism, which could lead to a breakout from its current pattern. A breakout would pave the way for a significant price increase, with institutional investors playing a crucial role in this momentum.

Larger SOL holders continued to support the asset, signaling growing optimism despite broader market uncertainty.

Major Solana Investors Show Support

Institutional investors have remained consistently bullish on Solana even as other major cryptocurrencies like Bitcoin and Ethereum have faced outflows.

According to a recent report from CoinShares, in the week ending October 4, the altcoin saw inflows totaling $5.3 million. This figure stands out as Bitcoin and Ethereum both experienced significant outflows in the same period, highlighting SOL’s strong appeal.

The fact that SOL is attracting institutional interest even at a bear market suggests that major players are confident in its long-term potential. As institutional inflows continue, this could provide the fuel needed to drive the price higher, making the altcoin a standout asset in an otherwise uncertain market.

Institutional inflows into Solana. Source: CoinShares

On a macro level, SOL is supported by bullish technical indicators. The Relative Strength Index (RSI) is one such indicator that has been showing signs of macro optimism.

Although the RSI is currently below the neutral line of 50, it has the potential to break above this level, entering the bullish zone. Such a move would provide further validation for the upward movement and help break out of its current pattern.

The combination of institutional support and improving technical indicators positions Solana for a potential breakout. If the RSI breaks above the 50 level and turns bullish, it would reinforce the likelihood of further bounces, potentially triggering a significant rally.

Solana RSI. Source: TradingView

Read more: How to Buy Solana (SOL) and Everything You Need to Know

Price forecast

In fact, Solana is trading at $140, holding above the key support level of $139. The cryptocurrency is currently moving inside an ascending triangle pattern, which usually precedes a breakout. If it manages to break out of this formation, it could see a 33% increase, taking the price to $216.

For such a breakout to occur, however, it would first need to break above the $161 resistance level. Given recent institutional inflows and bullish macro indicators, this is possible. A successful breakout would set the stage for further gains.

Solana price analysis. Source: TradingView

The rally would be confirmed once Solana clears the $184 resistance level and turns it into support. However, if it fails to break out of the ascending triangle, the price could retrace to $139. Losing this support would invalidate the pattern and cast doubt on the bullish outlook.

The article Solana (SOL) About to Rise? Investors Could Drive 33% Surge appeared first on BeInCrypto.