Solana price retests resistance at $60 following a sharp spike from support at $50. Interest in the token among institutional investors could keep propelling SOL towards $100.
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The cryptocurrency market seems relatively stable moments following the release of the United States Consumer Price Index (CPI) data. Prior to the release of the economic data, which shows that inflation eased to 3.2% on a yearly basis in October, Solana price tested but failed to break above $60.
The competitive smart contracts token, up 4.4% on Tuesday during US business hours, is trading at $57.13 after confirming support at $50. A break above the immediate but critical resistance at $60, is crucial for the continuation of the uptrend which points towards $100.
Solana Price Bullish Move Surpasses Inverse H&S Breakout Target
Solana validated the inverse head-and-shoulders (H&S) pattern when it broke the resistance at $24 in October.
This bullish move triggered a rally that continues to shape SOL’s technical outlook to date. As the trading volume increased, Solana price achieved the right volatility to keep the uptrend sustained. This meant that even with traders booking profits, there was enough inflow volume to keep Solana trending higher.
An inverse H&S is a highly bullish pattern that often guides traders to time key breakouts and trend changes. Buy orders placed above the neckline target a breakout as big as the height of the pattern. In Solana’s case, traders anticipated an 83% move to $45, which SOL already surpassed.
Despite the massive upswing, Solana bulls are nowhere close to dropping the ball, especially with the Moving Average Convergence Divergence (MACD) indicator adding credence to the bullish outlook.
With the momentum indicator upholding a buy signal and moving higher above the neutral area, the path with the least resistance remains to the upside. The green histograms rising from the mean line (0.00) is another bullish reinforcement.
For now, SOL’s approach to the pivotal level at $60 would determine the next direction the token takes. Successful break and hold above this level could call on more traders and medium to long-term investors to increase their risk appetite for gains toward $100.
On the other side of the fence, we can anticipate consolidation with support at $50 if Solana price fails to break above $60 this week.
There’s a growing probability that Solana will continue to close in on the $100 psychological level, now that institutional investors are turning their heads to related SOL products.
According to the latest report by CoinShares, Solana investment products saw an additional $12 million in inflow volume in the previous week, which contributed to the $1.08 billion in total crypto inflows.
Solana has always been a favorite among institutional investors, who capitalize on the token’s accelerated price surges during bullish markets. As attention shifts to SOL, gains are likely to be sustainable.
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