Solana's price is showing promising signs of recovery as ETF flows return to the market. The altcoin is currently testing a key technical resistance that could drive its bullish potential towards $170. Traders are closely monitoring this flag pattern set-up, anticipating a significant breakout in the coming weeks.
Solana has shown remarkable performance in recent weeks, supported by the return of inflows into ETF products linked to the crypto ecosystem. This institutional momentum represents a significant catalyst for SOL, which is currently testing a critical technical resistance zone around $150 to $155.
Trading volumes have significantly increased, indicating a renewed interest from investors in this tier-one altcoin. The Solana blockchain continues to attract developers and users thanks to its high performance and reduced transaction fees, strengthening the fundamentals supporting this price surge. Current momentum is also backed by consistent inflows into Solana ETFs.
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Technical analysis reveals that Solana is forming a classic chart pattern called a “bullish pennant.” This configuration is characterized by price consolidation following an initial upward movement, forming a symmetrical triangle that typically precedes a trend continuation.
To validate this pattern and target $170, SOL must break through the pennant’s upper resistance, located between $152 and $155 depending on the exchange. A confirmed breakout with substantial volume would likely trigger an acceleration toward the $170 target, potentially even higher.
Before that, SOL will need to break its 4-hour Order Block at $145. Prior to that, SOL could retrace to its Order Block between $128 and $130 before attempting to break it to the upside and target that $152 level.
The risk-reward ratio appears favorable for long positions if a pullback to $130 materializes, provided traders wait for confirmation of consolidation or a breakout rather than anticipating the move. Experienced traders are also monitoring correlations with Bitcoin and Ethereum, which still strongly influence Solana’s movements despite its superior relative performance.
Volatility remains a factor to consider, particularly in the current crypto market context. Investors must adjust their position sizing and use appropriate stop losses to manage the risks inherent to this type of technical configuration, even though probabilities currently favor the bullish scenario.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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