Solana's Price Recovery Potential Amid Institutional Interest

According to Cointelegraph, Solana (SOL) is showing signs of a potential price recovery, driven by a double-bottom pattern formation below $180 on the daily chart. This setup suggests that SOL could rebound towards $250 in the coming weeks. Veteran chartist John Bollinger has highlighted the possibility of W-bottom reversals for both Ether and Solana using his Bollinger Bands framework, indicating it might be time to pay attention. The SOL price recently dipped near the $175 area before stabilizing, hinting at a larger upward movement. Bollinger Bands, which utilize standard deviation around a simple moving average, are forming the second low of a W-shaped pattern on the daily chart. This pattern involves a double-pronged bottom followed by an upward exit. If confirmed, Solana's price could first recover to the neckline of the W-shaped pattern at $210, before potentially rising to the target of $250. Crypto YouTuber Lark Davis has also noted Solana's constructive outlook, with the RSI nearing a momentum breakout and the MACD heading for a bullish cross. Davis suggests that the price target of $250 will be achievable if the W pattern confirms, which would occur upon a neckline break. He emphasized the importance of bulls maintaining the 200-day EMA. As reported by Cointelegraph, a new uptrend is expected once buyers push the price above the 20-day EMA, currently at $200. Institutional demand for Solana investment products is on the rise, as evidenced by data from CoinShares. SOL exchange-traded products (ETPs) recorded weekly inflows of $156.1 million for the week ending October 17, contributing to a total of $2.8 billion in inflows for the year. In contrast, global crypto investment products experienced net outflows of $513 million, with Bitcoin (BTC) being the only major asset to see outflows totaling $946 million last week. CoinShares’ head of research, James Butterfill, attributed the inflows to the anticipation surrounding Solana ETF launches. The U.S. Securities and Exchange Commission (SEC) is expected to make decisions on nine spot Solana ETF applications, which have been delayed due to a government lockdown. Approval of these ETFs could unlock significant institutional capital, similar to the REX-Osprey Solana Staking ETF, which debuted on July 2 with over $33 million in first-day volume. Readers are reminded that this article does not offer investment advice or recommendations, and all trading moves involve risk. It is advised to conduct thorough research before making investment decisions.