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

▲ Solana (SOL) ©

At the cusp of a symmetrical triangle…an analysis suggests that Solana is on the verge of a ‘$100 breakout signal.’

According to the investment media FXStreet on April 27 (local time), Solana (SOL) is currently trading near $88, testing support above the 50-day Exponential Moving Average (EMA) of $87.04. The recent influx of funds into Solana spot ETFs and the booming derivatives market are coinciding, leading to a simultaneous revival in demand from institutional and retail 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 the previous 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 positions are also being observed in the derivatives market. According to CoinGlass, Solana futures open interest increased by more than 2% over 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 is also in the pre-breakout phase. Solana is currently testing the upper resistance line of a symmetrical triangle pattern on the daily chart, near $89. The Relative Strength Index (RSI) has broken above the neutral line at 55, and the Moving Average Convergence Divergence (MACD) has also entered positive territory, indicating a bullish advantage.

The path is clear if it breaks above. If the $89 resistance line is broken, the next target could be the psychological resistance of $100, and then the 200-day EMA at $113. Conversely, on the downside, the 50-day EMA at $87.04 and the ascending trendline at $85.99 act as key support levels. If this zone breaks, the short-term bullish structure is likely to weaken.

Ultimately, Solana has entered the pre-breakout phase with simultaneous inflows of institutional funds and buying pressure from the derivatives market. The market is currently at a crossroads of 'breakout or readjustment,' and the direction at the $89 level is expected to be a crucial turning point that will determine the short-term trend.

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