Better call SOL: Month-long consolidation puts Solana price en route to $275
Solana (SOL) price technicals suggest SOL can hit $275 in the coming sessions.
The upside outlook for the world's sixth-largest cryptocurrency by market capitalization comes as it consolidates inside a range that appears like a Bull Pennant.
In detail, Bull Pennants are bullish continuation indicators that form as the price consolidates inside a Symmetrical Triangle-like structure following a strong move upside.
The consolidation trend accompanies declining volumes, reflecting on the trend's underlying weakness.
And, as the price approached the apex—the point where the Pennant's trendlines converge, it tends to undergo a breakout to the upside, with the bull target at length equal to the height of the previous uptrend, i.e., Flagpole.
SOL/USDT daily price chart featuring bull pennant setup. Source: TradingViewSolana's flagpole height is roughly $125. That said, a breakout move at the Pennant's apex (at around $150) puts SOL en route to $275.
SOL/BTC pair also gains despite Bitcoin at $60K
Solana's prospects of hitting $275 come amid an overall price boom across the crypto market.
However, SOL price also rallied by 8% against Bitcoin (BTC) in the past two days in part due to its listing o South Korea's top crypto exchange Upbit.
Related: Solana chart 'bull flag' eyes $250 despite SOL price down 40% since last week
Overall, SOL has been one of the best performing altcoins in 2021, with its year-to-date profits at 8,500%. SOL traded at a record high of $216 in early September.
Institutional inflows boost SOL price
Despite Bitcoin currently in the limelight, Solana's price likely also received a boost from institutional capital via dedicated investment funds, according to a report from CoinShares published earlier this week.
"Digital asset investment products saw inflows 500 totaling US$226 million, bringing the 8 week run of inflows to US$638 million," CoinShares noted, adding:
"It was a mixed picture in other altcoins with recent favorites Solana (US$12.5 million) and Cardano (US$3 million) continuing to see inflows, suggesting the focus hasn’t entirely switched to Bitcoin.
Institutional inflows into crypto funds by asset. Source: CoinShares, BloombergThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.