Solana Surges 9.8% Amid Institutional Buying and Bullish Indicators

Solana, a prominent altcoin, has recently shown signs of breaking away from the broader market trend, exhibiting promising growth. The cryptocurrency's weekly chart indicates a bullish trajectory, with its price currently hovering around $158.12, surpassing its 50-week exponential moving average (EMA) of approximately $150. This upward movement suggests a potential reversal from the previous downtrend, which has been in place for about two months. The 50-day Simple Moving Average (SMA) is at $158.05, while the 200-day SMA stands at $167.31, indicating a longer-term bearish trend. However, the recent 9.8% price jump hints at a possible bullish reversal, with key resistance levels around the 50-day and 200-day SMAs. If Solana manages to break through these levels, it could potentially surge to $187 or even $200 in the coming weeks. Conversely, if the price dips below the support level of $145, it might face a drop to the $130-$140 range.

The Relative Strength Index (RSI) at 50.97 suggests a neutral market condition, neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) shows a bullish crossover, with the signal line dipping below the MACD line, indicating incoming buying pressure. This technical analysis, coupled with the recent surge in institutional buying, suggests that Solana could be poised for significant growth. The influx of institutional interest, totaling $5.3 million in buys week-over-week, indicates that major players are accumulating SOL, which could further drive the price upward.

Solana's high-speed blockchain and expanding decentralized finance (DeFi) ecosystem are attracting institutional investors, positioning the cryptocurrency for potential growth. If this trend continues, Solana could reach $220 by the third quarter of 2025, especially with the potential onset of altseason. However, a rejection at the $167 resistance level could lead to a retracement to $145 if market conditions become volatile. The overall sentiment surrounding Solana is optimistic, with analysts predicting that the cryptocurrency could experience a significant price increase in the near future. The combination of technical indicators, institutional interest, and a robust ecosystem suggests that Solana is well-positioned to capitalize on the current market conditions and achieve substantial growth.

An experienced analyst in the cryptocurrency market, known as Bluntz and holding the title of “Master Trader” at Bybit exchange, has suggested potential upward trends in Solana (SOL) and several altcoins in the coming period. Recently, he announced to his over 321,000 followers on social media platform X that Solana has broken its long-standing downtrend upwards. In his analysis, Bluntz pointed out that Solana surpassed a diagonal resistance level, which had been pushing its prices down since the end of May. The analyst anticipates positive weekly movements for SOL and the other projects in its ecosystem following this technical development. Bluntz: “We observed a nice downtrend break in SOL. Projects within the SOL ecosystem are also looking promising again.”

One of the projects the analyst closely monitors is the NFT-based altcoin Pudgy Penguins (PENGU). Bluntz noted that PENGU broke out upwards from a descending wedge pattern, suggesting this might mark the beginning of a strong upward trend. Based on technical indicators, he emphasized that short-term significant increases in the PENGU price are possible. Bluntz: “We saw extraordinary growth in PENGU. The chart is quite compelling, and much higher levels are within potential reach.” Bluntz’s analysis indicates that PENGU might rise to as high as $0.025. Currently, PENGU is at $0.014, having gained more than 6% over the last 24 hours.

Bluntz noted signs of strengthening in altcoins, not only in Solana and PENGU, but across the board against Bitcoin (BTC). He highlighted a negative divergence observed in the Bitcoin Dominance (BTC.D) chart over a three-day timeframe. Such a technical setup might signal that the market share of altcoins could increase relative to Bitcoin. Bluntz: “BTC.D shared without comment.” Bitcoin dominance is reported to be at 65.45%. This percentage indicates Bitcoin’s share within the total cryptocurrency market, and analysts interpret a decreasing trend in this figure as a positive signal for altcoins.

Considering the volatility in price movements in the cryptocurrency market, it is recommended that investors closely follow market analyses and proceed cautiously based on developments. Despite positive signals from technical indicators, cryptocurrencies are characterized by high risk. Cryptocurrency market experts stress the importance of conducting thorough research before making investment decisions.