Solana (SOL) is showing renewed bullish potential as its technical structure improves following a strong breakout. Crypto analyst Trader Tardigrade highlighted the formation of a bull flag on the daily chart, suggesting that the recent consolidation could precede another upward move.
The setup follows a breakout from a symmetrical triangle, a structure that previously capped the Solana price action. According to the analyst, the subsequent Bull Flag represents a continuation pattern that could allow the broader uptrend to resume. Trader Tardigrade has placed a measured-move target near $140 if the bullish setup plays out.
The pattern is developing after the Solana price delivered a sharp advance and reached resistance near $108.43. The subsequent pullback has brought the asset back toward important moving-average levels, creating a key decision zone for buyers and sellers.
Solana Price Tests Key Moving Average Support
TradingView chart analysis shows SOL hovering around the $99.25 mark, positioning the coin right above the 20-day EMA level of $99.06. This particular level has now become a significant zone of support, as its maintenance would show that the current price move is still just a consolidation.
Short-term resistance is formed at the level of the 20-day SMA near $101.97. An upward break of this barrier would strengthen the positive momentum and pave the way for testing the $108.43 area.
Source: TradingView
On the other hand, moving averages are positively sloped, providing support to the prevailing bullish configuration. The lower Bollinger band is placed at $95.50, while the 50-period EMA provides further support at $91.09.
Therefore, the $95.50 level is a significant technical support level in this case. If SOL can manage to stay above it, the bullish scenario will remain valid, while its break will add more downward momentum to the price.
Also Read: Solana RWA Holders Cross 400,000 as SOL Price Holds Above $100
Solana Price Eyes $140 as Bull Flag Forms
The focus of Trader Tardigrade’s technical analysis is especially placed on the bull flag pattern. A bull flag pattern usually emerges following a powerful rise in price and when traders start consolidating their gains in preparation for another possible rise.
Source: Trader Tardigrade’s X Post
The pattern for SOL has come into view following the breakout of the symmetrical triangle, providing a new positive indication for the setup. In case the buyers resume dominance above the current resistance region, the flag formation will come into play, confirming the move towards $140.
However, this configuration needs validation. SOL needs to retake nearby resistance and retain support in case of any retest. Inability to retain above the $99 mark may affect the current bullish outlook, whereas breaking below $95.50 could point towards increasing bearishness.
Bitwise Solana Buying Signals Institutional Demand
Institutional behavior has emerged as another potential positive factor for SOL, as the blockchain intelligence company Arkham pointed out that Bitwise has acquired about $107 million worth of Solana in the last month.
Source: Arkham’s X Post
The BSOL ETF of Bitwise saw $107.4 million worth of inflows during the past 20 days of trading, with outflows on just two trading days. The persistent inflow pattern shows that the demand for investment products that offer exposure to SOL has remained robust, despite the pullback in SOL.
This is crucial, as consistent ETF flows will ensure that there is an additional source of demand in situations where momentum in the spot markets is momentarily impaired. This could also mean that certain institutional players are leveraging the consolidation period to add to their exposure rather than unwind.
Solana Tokenized Equities Reach New High
The increase in the ecosystem of Solana is also serving as an important pillar for the bullish story. According to the data provided by Solana, the supply of tokenized stocks on the Solana chain has touched the mark of $684 million, marking a new all-time high.
Source: Solana’s X Post
This number has gone up by 47% within three weeks, which indicates that there is increasing activity when it comes to tokenized financial assets on the blockchain. An increase in the tokenized-equity supply will help Solana in establishing its foothold in the growing real-world asset market.
Improvements in technical structure, consistent flows into institutions, and increased tokenized equity trading provide SOL with multiple catalysts to look out for. In the short term, the support level at $99 is key.
Defending this support followed by a breakout of $101.97 can put $108 back on the radar again. If SOL breaches this resistance level, Trader Tardigrade’s Bull Flag target of $140 becomes the next major price target.
Also Read: Solana Sets New Record as 263K Tokens Are Minted in a Single Day
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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