The cryptocurrency market has opened another weekly candle bearish, with the leading cryptocurrencies currently struggling against the US Dollar.
Bitcoin, the leading crypto by market cap, has dropped below the $90k level after losing 1% of its value in the last 24 hours.
Leading altcoins Ether and XRP are also in the red after underperforming over the weekend.
Solana (SOL)’s price is hovering above $132, with the coin down by less than 1% over the past few hours.
The coin is nearing the upper boundary of a falling wedge pattern, suggesting that a decisive breakout could be on the cards.
The breakout could be fueled by growing institutional demand for Solana-based products.
The total assets under management (AUM) for spot Solana Exchange-traded Funds 9ETFs) is approaching $1 billion since launch.
With the technical and fundamental indicators supporting a bullish bias, SOL could rally past the $150 psychological level in the near term.
Institutional investors purchase more SOL
The primary catalyst that could spur SOL’s rally is the continuous adoption of Solana-based funds. Solana ETFs were launched on October 28 and have gained massive adoption since then.
Data obtained from SoSoValue reveal that spot Solana ETFs have recorded positive net inflows every week since their launch, with total net assets reaching $907.18 million on Monday.
The ETF inflow comes despite the choppy price action in recent weeks, suggesting that institutions are buying the dips rather than exiting the market.
This is a bullish outlook for SOL and could see its price surge higher over the coming weeks or months.
Furthermore, on the derivatives side, data obtained from CoinGlass shows that the long-to-short ratio for SOL stands at 1.07, the highest level in over four weeks.
The ratio above one suggests that the market sentiment is currently bullish, with traders currently betting on the asset price to surge higher.
SOL could rally above $150
The SOL/USD 4-hour chart is bullish and efficient, as the coin has lost 2% of its value in the last seven days.
SOL’s price has been trading within a falling wedge pattern over the past few days, but could record gains in the near term.
At press time, it is trading at $132, near the upper trendline boundary of this pattern.
If the rally resumes and SOL breaks above this pattern, it could surge past the next daily resistance at $160.
The Relative Strength Index (RSI) on the 4-hour chart reads 47, pointing upward toward the neutral level of 50, indicating a growing bullish momentum.
For the bullish momentum to be sustained, the RSI must stay above 50.
However, if the bearish trend continues, SOL could extend the decline toward the November 21 low of $121.66.
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