Solana (CRYPTO: $SOL) has formed a bullish trading pattern known as a “double bottom” that could signal a significant price increase is on the way.
SOL has risen 6% over the past week as investor confidence returns to the crypto market, bringing its market capitalization to over $50 billion U.S.
Solana’s price has gained along with other digital assets as tensions in the Middle East ratchet down and the price of crude oil steadies.
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The token is also benefitting from institutional adoption, with Goldman Sachs (NYSE: $GS) recently disclosing that it holds $108 million U.S. in spot Solana exchange-traded funds (ETFs).
Chart experts say that Solana is now in the process of completing a “double bottom” pattern, which is a set-up that typically signals a bullish reversal or breakout higher.
For Solana, the key price to watch is $97.80 U.S., which is about 10% above the current price.
A decisive breakout above that level could position SOL for a rise to $120 U.S. or higher, with no more major resistance levels in its way.
Solana is currently trading at $88.79 U.S., having risen 5% in the past 24 hours.