The bull flag pattern can raise the Solana (SOL) price up to $ 275
The bullish outlook for Solana (SOL) results from the formation of a bullish flag-like pattern that can reach $ 275 in the upcoming sessions.
In particular, bull flags are bullish continuation indicators that form when price consolidates within a symmetrical triangle-like structure after a sharp upward move.
The trend consolidation is accompanied by reduced volume, which reflects the underlying weakness of the trend.
And as the price approaches the peak – the point where the pennant trendlines converge, it tends to break out to the upside, with the target corresponding to the height of the previous uptrend, i.e. the flagpole.
SOL / USDT daily rate chart sets bull flag | Source: TradingView
SOL’s flagpole height is approximately $ 125. However, a breakout move at the top of the pennant (at around $ 150) gets it on its way to $ 275.
SOL / BTC rose too
SOL’s prospect of hitting the $ 275 mark lies amid a broader crypto market boom.
However, the price of SOL has also increased 8% against Bitcoin in the past two days, partly due to it being listed on the top South Korean exchange, Upbit.
SOL / BTC | Source: TradingView
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
According to a report from CoinShares, announced Although Bitcoin is attracting a lot of investor attention earlier this week, SOL’s price has been driven higher by institutional funding through dedicated mutual funds.
“Digital asset investment products recorded total inflows of $ 226 million, bringing the inflow to $ 638 million in eight weeks.”
“A composite image at Altcoins with recent favorites Solana ($ 12.5 million) and Cardano ($ 3 million) continues to see inflows, showing that the focus has not yet shifted entirely to Bitcoin.”
Institutional cash flow into digital asset investment products | Source: CoinShares
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cointelegraph