- Solana price has soared in the past few weeks and is showing signs of more gains.
- The token has formed a double-bottom pattern and moved above the 100-day moving average.
- The risk, however, is that its network metrics are deteriorating this year.
Solana price has continued its strong rally over the past few weeks, driven by ongoing institutional demand. SOL token jumped to $97 today, May 12, its highest point since February 4. It has jumped by 45% from its lowest point this year, and technicals point to a parabolic move.
Solana Price Prediction: Double-Bottom Pattern Points to a Surge
The daily chart shows that the SOL token price has risen over the past few weeks amid surging demand. A closer look shows it formed a double bottom at $75.35, its lowest point in February and April this year. It is now attempting to move above the neckline at $96.60, its highest point in March this year.
Notably, Solana price has jumped above the 50-day and 100-day Exponential Moving Averages (EMA). A move above these averages is a sign that momentum has continued to grow this year.
Another sign is that the Average Directional Index (ADX) has moved to 19.25 and is pointing upwards. It has moved to its highest point since March 22nd this year.
Therefore, the coin will likely continue rising as bulls target the 23.6% Fibonacci Retracement level at $112.35. Soaring above that price will signal more gains, potentially to the 50% retracement at $161.
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Institutional Demand is Rising
The Solana price has a major bullish catalyst: spot Solana ETF inflows have continued to soar this month. Data shows that spot SOL ETFs have added over $39.23 million in assets so far this month. They added over $38 million in assets last month and have had inflows in each month since they were approved in October last year.
The cumulative Solana ETF inflows have jumped to over $1.06 billion, with total assets exceeding $987 million. This growth is led by funds from top companies like Bitwise, Fidelity, Grayscale, VanEck, and Franklin Templeton. Solana’s futures open interest has continued rising this year.
However, on-chain metrics show that Solana’s network is not growing as it did before. For example, Artemis data shows that the stablecoin supply in Solana has dropped to $15.1 billion from the all-time high of over $17.5 billion.
The daily supply volume has dropped to $7.9 billion from the year-to-date high of $47 billion. This is notable as stablecoins have become a key part of blockchain technology. Daily application fees on Solana have dropped to $2 million from last year’s high of over $35 million.
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