Solana Price Technical Indicators (SOL) suggest that SOL could hit $ 275 in the upcoming sessions.
The bullish outlook for the world’s sixth largest cryptocurrency by market cap comes when it consolidates into a Bull Pennant-like area.
Bullish pennants, in particular, are bullish continuation indicators that form when price consolidates within a symmetrical triangle-like structure after a strong upward movement.
The trend consolidation is accompanied by decreasing volume, which reflects the underlying trend weakness.
And as price approaches the high – the point where Pennant’s trend lines converge, it tends to break out to the upside, with the increased target length equal to the height of the previous uptrend, i.e. the height of the previous uptrend flagpole.
Solana’s flagpole height is around $ 125. However, a breakout move at the top of Pennant (around $ 150) puts SOL on its way to $ 275.
The SOL / BTC pair is also bullish despite Bitcoin at USD 60,000
Solana’s prospect of hitting the $ 275 mark is amid an overall price boom in the crypto market.
However, SOL’s price has also risen 8% versus Bitcoin (BTC) in the past two days, in part due to its listing on the leading South Korean crypto exchange Upbit.
Related: ‘Ranking Flag’ Solana Chart Hits $ 250, Despite SOL Price Down 40% Since Last Week
Overall, SOL is one of the top performing altcoins in 2021 with a return of 8,500% to date. SOL traded at a record high of $ 216 in early September.
Institutional capital flows drive the price of SOL
While Bitcoin is currently in the spotlight, Solana’s price could also rise from institutional capital through dedicated mutual funds, according to a report by CoinShares released earlier this week.
CoinShares notes, “Digital investment products saw inflows of $ 500 totaling $ 226 million, bringing 8-week inflows to $ 638 million,” noted CoinShares.
“The picture is mixed for other altcoins, with recent favorites Solana ($ 12.5 million) and Cardano ($ 3 million) continuing to see inflows, showing that the focus is not yet shifting entirely to Bitcoin Has.