Key takeaways:
Solana's double-bottom below $180 signals potential price recovery to $250.
Institutional demand for SOL rises with $156 million in weekly ETP inflows, driven by hype for potential Solana ETF approvals.
Solana ( SOL ) price formed a potential double-bottom pattern below $180 on the daily chart, a setup that could help SOL price recover toward $250 in the weeks ahead.
Solana Bollinger Bands could lead to a recovery
Veteran chartist John Bollinger said it may be “time to pay attention,” spotting potential W-bottom reversals on Ether and Solana using his Bollinger Bands framework.
The call followed SOL price double-dipping near the $175 area before stabilizing, implying a bigger move may be in the cards.
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This is an encouraging sign from Solana, according to Bollinger. The Bollinger Bands (BB) indicator uses standard deviation around a simple moving average to determine both likely price ranges and volatility.
Bollinger Bands are forming the second low of a W-shaped pattern formation — a double-pronged bottom followed by an exit to the upside — on the daily chart.
In this situation, SOL’s drop to $172 on Oct. 11 was the first bottom, and Friday’s drop to $174 was the second, retesting the lower boundary of the BB.
If confirmed, Solana's price could recover from the current levels, first toward the neckline of the W-shaped pattern at $210, before rising toward the target of the prevailing chart pattern at $250.
“Solana is looking very constructive here, with the RSI nearing a momentum breakout and the MACD heading for a bullish cross,” said crypto YouTuber Lark Davis in an X post on Monday.
An accompanying chart showed SOL price forming a potential W (double-bottom) in the daily time frame.
“Price target here is $250 if the W confirms, which will happen on a neckline break.”
The key thing now is for “bulls to hold the 200-day EMA,” Lark Davis added.
As Cointelegraph reported , a new uptrend will begin once buyers drive the price above the 20-day EMA, currently sitting at $200.
Investors increase exposure to Solana
Institutional demand for SOL investment products appears to be increasing, according to data from CoinShares.
SOL exchange-traded products (ETPs) posted weekly inflows of $156.1 million in the week ending Friday, bringing their inflows for the year to $2.8 billion.
Conversely, global crypto investment products recorded net outflows of $513 million , with investors particularly de-risking from Bitcoin ( BTC ), the only major asset to see outflows totaling $946 million last week.
CoinShares’ head of research, James Butterfill, said:
“Hype for the Solana ETF launches drove inflows.”
The US Securities and Exchange Commission (SEC) is expected to decide on nine spot Solana ETF applications , which have been delayed by the government lockdown .
Approvals could unlock billions in institutional capital, as seen with REX-Osprey Solana Staking ETF, SSK, which debuted on July 2 with over $33 million in first-day volume .
