Despite the recent bearish trend, Solana (SOL) is showing signs of a potential breakout, with both technical and fundamental indicators pointing to a bullish move.
Crypto trading expert Trader Tardigrade has identified a recurring price pattern that suggests SOL could reach $565, signaling another major rally in the asset.
Within this pattern, every breakout from the ascending triangle formation invariably reached the 2,618 Fibonacci extension level.
Price Analysis Chart Solana . Source: Trader Tardigrade
SOL is currently in the late stages of another ascending triangle. With the pattern more than half complete, traders are waiting for a breakout confirmation that could push SOL towards the next Fibonacci target at $565.
In addition to technical indicators, the optimistic forecast for Solana supports a positive attitude from institutions. In particular, the investment company VanEck predicts that in 2025 SOL may reach a value of $520, which will be facilitated by the development of smart contract platforms.
Dominance is expected Solana in this sector will grow from 15% to 22% by the end of 2025. This assumption is based on macroeconomic factors, in particular the growth of the US M2 money supply, which has historically demonstrated a strong correlation with the cryptocurrency market capitalization.
In addition, the growing acceptance Solana developers, increasing DEX trading volumes and an expanding active user base reinforce this optimistic outlook.
Another factor in favor of the growth of the SOL price should be considered the possible approval of applications for Solana ETF in the US SEc from Grayscale. As a rule, the products of this company receive 100% approval.
