Key Insights
- Solana formed an ascending channel pattern and primed for an upmove.
- CME launches SOL futures as institutional demand continues rising.
- Derivatives trading volume for SOL has increased by 22% on exchanges.
Recently, Solana (SOL) price started showcasing promising signals. It appears poised for a rebound toward $140 as traders rebalanced their positions amidst large investors’ accumulation activity.
After defending the support cluster of $110, SOL price bounced off over 10% this week. Moving ahead, this showcased resilience despite market volatility.
The growing institutional interest in Solana and anticipation surrounding a potential Solana exchange-traded fund (ETF) have significantly increased optimism. These factors have heightened expectations for a favorable price surge in the near future.
At press time, Solana price was trading at $124.53, noting a decline of over 3.20% in the past 24 hours. Its market cap stood at $63.67 Billion, ranked 6th in the crypto market.
Solana Price and Institutional Investment Momentum
The exchange firm FalconX completed its first block trade on Solana futures. This occurred before the CME Group’s official launch of SOL futures contracts.
Financial institutions show interest in regulated Solana investments through their trade with StoneX. CME Group introduced SOL futures contracts in late February because institutional investors actively sought access to the product.
Standard futures contracts permit risk management investors to get access to 500 SOL. On the other hand, small contract options allow access to 25 SOL.
The CME CF Solana-Dollar Reference Rate supports cash settlement for these contracts. It provides daily reference rate updates at 4:00 p.m. London time. The launch of Solana spot ETF applications seeks approval from Grayscale and Franklin Templeton with support from Bitwise.
With fund approval from regulators, investors would gain access to SOL via regulated purchase and maintenance programs. This would draw billions in new network capital.
Historical data demonstrates that the launch of regulated futures exchanges enables ETF creation.
Bitcoin and Ethereum notably followed this trajectory, raising expectations for SOL price momentum as the process unfolds.
Solana Forms Cup and Handle Pattern: Is a Bull Run Ahead?
A recent post by Mister Crypto on X noted that Solana price has formed a bullish cup and handle pattern. This pattern is visible on the monthly time frame, signaling potential upward momentum. At press time, it was in an accumulation zone and making the handle phase.
A successful close above the $150 mark would permit the bulls to strike the $200 mark in the next few sessions. Ali Charts noted that SOL price action showed a distinct ascending channel pattern as it bounced between clear trend lines.
Solana price was positioned at $129, placing it near the base of its ascending channel. At the same time, it indicated a potential jump toward the upper resistance at $140.
Derivatives trading activity data from Coinglass revealed a different trend. SOL futures volume on centralized exchanges has risen by 22%.
This suggested that traders are actively positioning for future market movements. Moving ahead, this reflected the growing interest in SOL price dynamics.
However, the Open Interest (OI) surged over 0.20% to $3.74 Billion, highlighting prolonged buildup activity in the past 24 hours. The OI-weighted funding rate stayed at -0.0045%, reflecting lower demand for long contracts.
The immediate support zones for Solana price were $115 and $110. At the same time, the resistance zones were $135 and $150.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
