Key Points:
SOL has formed a double bottom pattern below $180, indicating that the price may rebound to $250.
Institutional demand for SOL is rising, with weekly ETP inflows reaching $156 million, driven by the excitement around the potential approval of Solana ETFs.
The price of SOL has formed a potential double bottom pattern on the daily chart below $180, which is expected to drive the price of SOL up to the $250 level in the coming weeks.
Senior chart analyst John Bollinger noted, "Now might be a time to pay close attention," as he identified potential W-bottom reversal signals for Ethereum (ETH) and SOL through the Bollinger Bands analysis framework.
This assessment was made after SOL's price stabilized around $175, suggesting that a larger market movement may be about to unfold.
Bollinger believes this is an extremely positive signal for SOL. The Bollinger Bands (BB) indicator uses the standard deviation around the simple moving average to determine potential price ranges and market volatility.
The Bollinger Bands are forming a second low in a W shape on the daily chart—an upward breakout pattern following the double bottom.
In the current situation, SOL dropped to $172 on October 11, forming the first bottom, while it fell to $174 on Friday, creating the second bottom, retesting the lower boundary of the Bollinger Bands.
If this pattern is confirmed, SOL's price is expected to rebound from current levels, first climbing towards the W pattern's neckline at the $210 area, and then moving towards the target price of $250 based on the existing chart pattern.
Cryptocurrency YouTuber Lark Davis stated in a post on the X platform on Monday, "The current technical pattern for SOL is very constructive, with the RSI indicator close to the momentum breakout zone, and the MACD indicator trending towards a bullish crossover."
The accompanying chart shows that SOL's price is forming a potential W shape (double bottom) in the daily time frame.
Lark Davis further pointed out that the key for the current market is that "the bulls must hold above the 200-day moving average."
As Cointelegraph previously reported, once buyers successfully push the price above the 20-day moving average (currently at $200), a new upward trend will officially begin.
According to CoinShares data, institutional demand for SOL investment products is on the rise.
Solana exchange-traded products (ETPs) recorded inflows of $156.1 million in the week ending last Friday, bringing the total inflows for the year to $2.8 billion.
In stark contrast, global cryptocurrency investment products recorded a net outflow of $513 million, with investors particularly reducing their risk exposure to Bitcoin (BTC), which was the only major asset to experience outflows last week, totaling $946 million.
CoinShares research director James Butterfill pointed out:
The U.S. Securities and Exchange Commission (SEC) is expected to make decisions on nine spot Solana ETF applications, which had previously been delayed due to the government shutdown.
Once approved, these ETFs could unleash billions of dollars in institutional funds, similar to the REX-Osprey Solana Staking ETF (SSK), which saw over $33 million in trading volume on its first day when it debuted on July 2.
Related: Solana founder unveils design plan for new perpetual contract DEX "Percolator"
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Will Solana (SOL) Price Bounce Below $180? Double Bottom Pattern Hints at 40% Rally”
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