Over the past month, a 16% increase was seen in Solana price as it traded within a symmetrical triangle pattern, a breakout from which could likely propel it to as high as $237 over the coming days.
Solana surged to an intraday peak of $208.5 on the morning of Sep. 8, Asian time, before a value of $207.7 was settled upon at press time. At this price, it has gained 33% over its August low and is nearly 100% above its lowest point this year.
The token’s recent gains were driven by increasing demand from derivative traders. For instance, SOL futures open interest has climbed to $12.9 billion at press time, which is up from $9.5 billion on the same day last month.
Its weighted funding rate has also remained consistently positive since Aug. 7, which indicates that a bullish sentiment on SOL’s short-term price outlook has been maintained by derivative investors.
In the midst of such bullish sentiment, SOL’s price now appears ready to validate a bullish configuration on a rare pattern that has been formed on the 4-hour chart.
Notably, SOL’s price has been transacting within a symmetrical triangle pattern since late August. The pattern is formed when the price makes lower highs and higher lows, converging into a narrowing range that signals a period of consolidation.
At press time, SOL’s price is being traded on the verge of confirming a break above the upper trendline of the pattern.
The possibility of such a price movement is bolstered by the momentum indicators. The MACD line has ascended above the signal line, which suggests a strengthening short-term uptrend. Additionally, the Relative Strength Index has been climbing and now sits at 56, signaling a transition to a bullish trend with still room to run before hitting overbought levels.
Therefore, if a clean breakout above $208.8 is achieved by SOL’s price—which marks the upper boundary of the symmetrical pattern—a bullish breakout would be confirmed, with a rally to as high as $237 being a projected target based on the height of the pattern.
However, the bullish setup will be negated if SOL’s price falls below the pattern’s lower trendline, which could then turn into a bearish breakdown and potentially lead to further losses.
The Forces Behind the Rally
A primary catalyst that could aid SOL’s price appreciation in the coming days is the imminent Nasdaq listing of SOL Strategies, a firm that was previously transacting on the over-the-counter (OTC) market. This move to a major U.S. exchange would represent a significant milestone for the company and is anticipated to enhance its visibility and fundraising capabilities.
SOL Strategies has become one of the largest institutional holders of Solana, with a current cache valued at over $87 million in SOL tokens. In addition to its existing position, plans to raise up to $500 million to further expand its SOL reserves have been disclosed by the firm.
That capital raise would likely be facilitated by a successful Nasdaq listing, which would indirectly benefit Solana by tightening available supply and signaling deeper institutional confidence in the network.
Beyond the listing, another bullish tailwind could be provided by regulatory developments.
SEC Reviews Multiple Solana-Based ETF Proposals for Institutional Access
Several Solana-based ETF proposals are currently being reviewed by the U.S. Securities and Exchange Commission (SEC). If approved, these ETFs could clear the path for wider institutional access to the asset and potentially lead to significant inflows.
Contributing to the bullish narrative, a resurgence is being witnessed in Solana’s NFT ecosystem. Over the past 24 hours, a 47% surge in sales volume for Solana-based NFTs has occurred, along with a comparable rise in the number of active buyers.
Retail and speculative demand could be reignited by this rebound, which follows a period of declining interest, further strengthening Solana’s market momentum.
