Solana, if it breaks $89, will it go to $100?

▲ Solana (SOL) ©

At the end of a symmetrical triangle pattern... analysis suggests that Solana is on the verge of a 'signal to break $100'.

According to FXStreet, an investment media outlet, on April 27 (local time), Solana (SOL) is currently trading around $88, testing support above its 50-day exponential moving average (EMA) of $87.04. The recent inflow of funds into Solana spot ETFs, combined with a booming derivatives market, indicates a resurgence of demand from both institutional and individual investors.

Institutional demand is also picking up again. According to SoSoValue data, Solana ETFs recorded a net inflow of $9.44 million this week, following an inflow of $35.17 million last week. Although there was an outflow of $1.17 million on Friday alone, the weekly net inflow trend was maintained, which is interpreted as a sign of institutional funds re-entering the market.

Strong long position building is also observed in the derivatives market. According to CoinGlass, Solana futures open interest increased by more than 2% in 24 hours, reaching $5.23 billion. The funding rate also rose to 0.0095%, forming a typical bullish structure where a premium is paid to maintain long positions.

Technically, it's also on the verge of a breakthrough. Solana is currently testing the upper resistance line of a symmetrical triangle pattern, around $89, on the daily chart. The Relative Strength Index (RSI) broke above the neutral line at 55, and the Moving Average Convergence Divergence (MACD) also entered the positive territory, indicating a bullish dominance.

If the upper resistance is broken, the trend is clear. If the $89 resistance is broken, the next targets could be the psychological resistance of $100, and then the 200-day EMA at $113. On the downside, the 50-day EMA at $87.04 and the ascending trendline at $85.99 act as key support levels. If this range breaks, the short-term bullish structure is likely to weaken.

In conclusion, Solana has entered a phase just before a technical breakthrough, with institutional funds and derivatives market buying pressure flowing in simultaneously. The market is now at a crossroads of 'breakout or re-adjustment', and the direction at the $89 level is expected to be a key turning point that will determine the short-term trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*