SOL price surges to $150 as this week’s 25% gain forms a ‘double bottom’

SOL’s price is expected to surge more than 45% in the coming weeks as it looks set to complete a double bottom pattern.

SOL on the verge of hitting $150?

A double bottom usually occurs at the end of a downtrend when price falls to a low, bounces up, and bounces back near the previous low. As the bears failed to push the price to a fresher low, selling sentiment dried up, leading to another strong rally and subsequent breakout.

SOL has been drawing a similar pattern since Jan 24th, especially after the recovery move was extended 25% (WTD) to above $100 for weeks.

Additionally, clear bullish divergence between the price trend and the Relative Strength Index (RSI) suggests that a double bottom breakout is likely.

Daily SOL/USD price chart and double bottom setups, bullish divergence | Source: TradingView

However, a bullish confirmation is possible if SOL price breaks the double lower neckline near $120 on increased trading volume. Accordingly, the bullish target is the length of the maximum distance between the flat bottom low and its neckline.

That will push the SOL price to at least $150 and potentially continue the uptrend towards $170 highlighted in red in the chart above.

cow trap danger

On the other hand, prominent market analyst “Capo” has warned of a potential bull trap in the SOL market, noting that altcoins in general will continue their downtrend.

According to the analyst, the double end result of $120 is a solid resistance that is likely to limit the SOL’s current upside momentum. He also applied the popular Elliott Wave theory to point to the start of the next SOL bear wave cycle, denoted by “c” in the chart below.

Daily SOL/USD price chart | Source: Capo, TradingView

“For me the price can’t be bullish here after breaking all bullish MSs + corrections to the upside. You can enjoy pumps in low time windows as they last, but don’t get too comfortable,” Capo called on the 1st of March.

This pessimistic outlook is consistent with report CoinShares released last week showed that most altcoin-based investment vehicles have experienced negative investor sentiment, including BNB, DOT, ADA, XRP, and LTC.

Cash Flow by Assets for the week ended 02/25 | Source: Bloomberg, CoinShares

Solana was also impacted during this period, as SOL investment products saw $2.6 million in outflows.

In contrast, the sum of all digital asset investment products attracted $36 million over the same period, with multi-asset portfolios receiving the second-highest funding – $14 million, behind Bitcoin’s $17.3 million.

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