Solana (SOL) Kicks Off Vertical Rally to $130... "Breaks Resistance, Soars Up"

▲ Solana (SOL)/ChatGPT generated image

Solana (SOL) has initiated a full-scale breakout rally towards $130, forming a bull flag pattern on technical indicators. The confluence of capital inflow into exchange-traded funds and the recapture of psychological resistance is fueling expectations for further upside.

According to Coingape on September 18 (local time), virtual asset analyst Ali diagnosed that a typical bull flag pattern was observed on Solana's 4-hour chart. The analysis suggests that if Solana, which has consolidated its price around $101 after an upward flagpole, breaks and settles above the key resistance of $105, it could surge to the $130 mark in one go. Ali predicted, "If a decisive breakout forming a closing price above $105 occurs, the rally towards $130 will begin in earnest."

Steady capital inflow into institutional funds is also strongly supporting the upward trend. According to financial data platform SoSoValue, on September 16, the Solana spot ETF market saw a net inflow of $836,930. While $1.85 million exited Grayscale's GSOL, $2.69 million flowed into Bitwise's BSOL, completely offsetting the outflow. The total net assets of Solana spot ETFs, encompassing seven products, swelled to $1.38 billion, accounting for 2.38% of its market capitalization.

Technical auxiliary indicators also uniformly point to an expansion of buying pressure. On the 4-hour chart, the Moving Average Convergence Divergence (MACD) line is above the signal line, with the histogram recording a positive 0.44, proving that the rebound momentum has strengthened. The Relative Strength Index (RSI) has also risen to a stable level of 59.42, not yet entering the overbought zone, indicating further room for ascent.

The passage of a bill by a U.S. House committee for a national strategic Bitcoin (BTC) reserve has also revived overall investment sentiment in virtual assets, serving as a positive backdrop. Despite the setback of delays in cryptocurrency market structure legislation in the U.S., expectations for institutional adoption are sustaining the market. If it breaks past the $105 resistance, it is expected to test the $110 and $120 resistance levels sequentially, aiming to reclaim the $130 high.

In the short term, whether it settles around $105 is considered a watershed moment that will distinguish a true breakout from a false one. As the $100 support level has been robustly defended, the inflow of buying pressure due to the completion of the technical pattern is acting as a strong upward driving force for the market.

[Article Key Summary]

-Solana (SOL) formed a bull flag pattern on the 4-hour chart, with a target price of $130 suggested upon breaking $105.

-The total net assets of spot ETFs were recorded at $1.38 billion, with $2.69 million flowing into Bitwise's BSOL.

-The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) improved, successfully recapturing the psychological resistance of $100.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*