Solana (SOL) gains 3.48% as bullish reversal pattern forms

Solana (SOL) has recently exhibited signs of recovery after hitting a significant low of $125.99. Analysts are closely monitoring the formation of a W-shaped reversal pattern, which suggests that the cryptocurrency may be targeting the $150–$160 zone. This pattern is characterized by a double bottom formation, where the price drops to a certain level, rebounds, drops again to a similar level, and then rebounds once more. This technical setup is often interpreted as a bullish signal, indicating potential for sustained upward movement.

At the time of writing, SOL is trading at $147.02, reflecting a 3.48% gain over the last 24 hours. The W-shaped reversal pattern is forming after SOL rebounded from $125.99, and analysts are optimistic that if the price strength holds above the $145–$147 area, a bullish reversal could be confirmed. A breakout above the $150 level is expected if the asset maintains its upward momentum.

Technical indicators further support this bullish outlook. Gemxbt observed that SOL recently broke above the $146 resistance level, with the MACD printing a bullish crossover and volume showing strong accumulation. The RSI is nearing overbought levels, suggesting that short-term pressure may slow, but the overall upward momentum remains robust. Additionally, SOL’s price has stayed above the middle Bollinger Band, currently near $145, which has historically marked turning points in Solana’s price trend, signaling strength when paired with increased volume.

Beyond technical indicators, on-chain trends and institutional interest are also reinforcing the bullish case for Solana. The filing of multiple spot SOL ETFs by firms indicates rising institutional interest. This may drive higher demand for SOL as investors anticipate formal adoption. Polymarket data gives a 74% chance of ETF approval by July, which could further boost the cryptocurrency's value.

DeFiLlama data shows that Solana reached $64 billion in 30-day DEX volumes, ranking just behind BNB Chain. This growth supports higher usage of the blockchain, particularly amid falling meme coin activity. Additionally, Wyoming plans to use Solana for a state-backed stablecoin project, supporting real-world utility. If SOL flips resistance at $152 and $159 into support, analysts believe the path to $164 and $187 becomes more likely.

In summary, Solana's formation of a W-shaped reversal pattern and its potential to target the $150–$160 zone is a significant development for the cryptocurrency. The pattern, combined with strong technical indicators and increasing institutional interest, suggests that Solana may be poised for a sustained upward movement. However, investors should remain cautious and conduct their own research before making any investment decisions, as the cryptocurrency market is highly volatile and unpredictable.