Solana (SOL) has seen a surge in its value by more than 3% in the last 36 hours, with the coin trading at $160 on July 17. Analysts predict that the coin could potentially experience a major rally, with the price target set at $174. The recent price action shows a W pattern, which usually indicates a bullish reversal, signaling a shift from a downtrend to an uptrend. Solana broke past $160 on July 16, reaching a fresh monthly high, accompanied by increased buying pressure and rising trading volumes.
The Relative Strength Index (RSI) for Solana is at 60, indicating a moderately strong trend without being overbought. Analysts suggest that Solana has room for further growth, with potential bullish implications due to the possibility of a short squeeze. Traders predict that nearly $3 billion in SOL short positions will be liquidated if the price hits $176, leading to increased buying pressure and driving prices further upwards. The ongoing bullish sentiment in the cryptocurrency market has been contributing to Solana’s recent gains.
In addition to the positive price action, Solana may also benefit from the potential launch of spot Ether exchange-traded funds (ETFs) in the US. Bloomberg ETF analyst Eric Balchunas believes that once Ether ETFs receive regulatory approval, it will pave the way for more crypto ETFs, including Solana. Asset managers like 21Shares and VanEck have already filed for spot Solana ETFs in the US, with expectations of launching them in 2025. This development could open up more investment opportunities for Solana and further drive its growth in the market.
The current market conditions and technical indicators suggest that Solana is in a favorable position for further price appreciation. The recent W pattern, increased trading volumes, and strong RSI indicate positive sentiment towards Solana’s potential to rally towards $174 and beyond. With the possibility of a short squeeze and the anticipation of ETF launches in the US, Solana could experience significant growth and attract more investors looking to capitalize on the bullish momentum in the cryptocurrency market. As the cryptocurrency market continues to evolve, Solana’s performance remains one to watch for potential investment opportunities and profitable returns.
