Solana (SOL) Price Poised for 20% Gain Despite ETF Delay

Solana (SOL) has recently demonstrated a bullish chart setup, which has overshadowed the delay in the approval of a Solana ETF by the U.S. Securities and Exchange Commission (SEC). The cryptocurrency has shown a rare crossover between a key network metric and its price, indicating a potential breakout. This bullish signal, which has not been seen in five years, suggests that SOL could be poised for significant gains.

Technical analysis further supports this optimistic outlook. Despite recent attempts to rally, the Relative Strength Index (RSI) divergence at recent highs indicates weakening bullish momentum. However, multiple bullish patterns are emerging, targeting price levels between $260 and $300 if SOL can break above the $175 resistance. Strong on-chain metrics also support this bullish outlook, suggesting that the network's fundamentals are robust.

The delay in the SEC's decision on Fidelity's proposed Solana ETF has not dampened investor sentiment. The ETF, submitted through the Cboe BZX Exchange, has faced repeated delays, but the market's focus remains on the potential for SOL to break through key resistance levels. The bullish chart setup and strong on-chain metrics have trumped the regulatory uncertainty, keeping the cryptocurrency in a favorable position.

The SOL price is currently at a critical turning point, with the bullish target aiming to break through the 50-day moving average resistance of $154. If buying pressure continues to build, SOL could see a significant rally in the coming weeks. The market's reaction to the ETF delay has been muted, with investors seemingly more concerned with the technical and on-chain indicators that point to a bullish future for Solana.

SOL’s narrowing range suggests a potential range expansion in the next few days. The possibility of an upside breakout remains high as the bulls buy on every minor dip. A positive in favor of the bulls is that they have not allowed the price to dip and sustain below the 20-day exponential moving average. If the price surges above $159, the momentum could pick up and the SOL/USDT pair could rally to $168 and eventually to $185. On the contrary, if the price turns down and breaks below $144, it suggests the bulls have given up. That may pull the price down to $137 and later to $130.

The pair has formed a bearish descending triangle pattern on the 4-hour chart, which will complete on a break and close below $144. That may start a downward move to $137 and then to the pattern target of $129. Buyers have other plans. They are trying to push the price above the downtrend line, invalidating the bearish setup. If they manage to do that, the pair may climb to $159. This is a crucial level to watch out for because a close above $159 will complete an inverse head-and-shoulders pattern, which has a target objective of $192.