Key Insights
- Solana price has formed a large double bottom on the daily chart.
- SOL ETFs are nearing their $1 billion milestone in terms of assets.
- The recent Solana futures open interest crash has faded in the past few weeks.
Solana price remains in a technical bear market after plunging by 45% from its highest level in September.
This performance could turn around soon as the altcoin has formed a giant double-bottom pattern on the daily chart, while the ongoing SOL ETF inflows have pushed the total assets closer to the $1 billion milestone.
Solana Price Technical Analysis Points to a Rebound as Double-bottom Forms
The daily chart shows that Solana price has been in a strong downward trend over the past few months. It has continued to form a series of lower lows and lower highs, with bears overcoming any rebound attempts.
The crash intensified after SOL formed a death cross pattern on November 13, as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other.
Still, a closer look shows some positives that may trigger a rebound in the near term. One of them is that the coin has formed a giant double-bottom pattern at $125.32, its lowest level on June 22 and November 21. This pattern’s neckline is at $253x, the highest point in September.
A double-bottom pattern often leads to a rebound, as it signals that bears are not comfortable shorting the altcoin below its lower side.
Meanwhile, the Relative Strength Index (RSI) has pointed upwards and has crossed the descending trendline that connects the highest swings since September 19. That indicates the token is forming a bullish divergence pattern, which is a common reversal sign.
Meanwhile, the two lines of the MACD indicator have formed a bullish crossover pattern. It often leads to a strong rebound.
Therefore, the most likely SOL price forecast is bullish. The initial target could be the psychological level at $200, which is about 47% above the current level.
On the other hand, a Solana price crash below the double-bottom point at $125 will invalidate the bullish outlook and indicate further downside.
Spot SOL ETFs are Nearing a $1 Billion Milestone
One of the main bullish catalysts for the Solana price is the ongoing accumulation. Data compiled by SoSoValue shows that spot SOL ETFs have never had a day of net outflows. These funds had over $53 million in inflows on Monday, bringing the cumulative inflation since their launch to $621 million.
The Bitwise Solana ETF continues to lead in terms of inflows with over $514 million. Grayscale, 21Shares, Fidelity, VanEck, and Canary follow it.
Spot Solana ETFs have accumulated $888 million in assets, which is equivalent to 1.15% of its market capitalization. In contrast, Bitcoin and Ethereum ETFs hold 5.5% and 6.5% of their respective market capitalizations.
Spot SOL ETFs may continue to see more inflows if a new crypto market bull run resumes. They may also see strong demand as Franklin Templeton, a company with over $1.6 trillion in assets, is prepared to launch its fund.
SOL Price Has More Bullish Catalysts
A closer look at third-party data reveals that Solana price has several bullish catalysts. One of these potential catalysts is that the recent crashing of futures open interest has bottomed.
Solana’s futures open interest has remained at $7 billion since November 5. It is a sign that the ongoing deleveraging is coming to an end. This, in turn, may drive more investors to start using leverage, which will boost its price.
Another potential bullish Solana price forecast is that the network has overtaken Ethereum and BNB in a crucial metric. Data compiled by DeFi Llama shows that the DEX volume over the past 30 days exceeded $114.82 billion. That’s much higher than Ethereum and BNB Smart Chain’s (BSC) $80 billion and $86 billion.
To sum it up, Solana price has crashed in the past few months, but it could change soon. SOL price has formed a double-bottom pattern, and its fundamentals are also encouraging.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.