Can Solana's price surpass the $239 barrier, potentially leading to a retest of its all-time highs?
Solana, the popular cryptocurrency, is showing signs of a potential bullish breakout as its price approaches a significant resistance level of $239. This development, if successful, could propel Solana towards challenging its all-time highs.
The ongoing consolidation under $239 is directly tied to a cup-and-handle formation, a technical pattern that has been forming on Solana's price chart. This pattern, if confirmed, could project a move towards $500 if the resistance is cleared.
The cup-and-handle pattern's neckline resistance is around the $250 region, and a break above $239 would be a critical step towards testing this resistance. If buyers absorb selling pressure at $239, it strengthens the case for a continuation towards the $250 neckline breakout, which would confirm the cup-and-handle setup and shift momentum in favour of the bulls.
This bullish narrative for Solana's price is bolstered by the increasing demand from institutional investors. In recent weeks, major institutional allocations to Solana have been made, primarily through its first U.S. ETF and leveraged ETFs. These investments have attracted approximately $316 million, with significant shifts from stablecoins into Solana by institutional investors. Key institutional players include cryptocurrency ETFs and venture funds engaged in DeFi/NFT infrastructure investment, with Alpine Select also realizing gains by selling parts of their Solana position in a favourable market environment.
Moreover, institutional demand for Solana has reached a record high, with fresh inflows totaling $145M and pushing the total assets under management to an all-time high of $4.1B. Notable investments include Forward Industries' commitment of $1.65B to deploy within Solana's DeFi ecosystem, and Galaxy's acquisition of $1.55B worth of SOL in just five days.
The increased institutional demand, coupled with the technical bullish setup, adds strength to the bullish narrative for Solana's price. However, it is important to note that $239 is identified as a clear battleground for price, with supply from previous holders potentially looking to offload their holdings into rallies at this level.
As of now, Solana's price is trading at $236.57, up 1.08% in the last 24 hours. The daily trading volume is near $7.69B, and the market cap is roughly $128.6B.
In conclusion, the bullish momentum for Solana is building as it approaches the critical resistance level of $239. A successful breakout above this level could signal a continuation towards the $250 neckline breakout and potentially challenge the all-time highs. However, the resistance at $239 is expected to be strong, and the outcome of this battle could shape Solana's price trajectory in the near future.
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