SOL price has increased over 35% from its June low and created an unusual pattern that indicates possible gains in the next few weeks.
Summary
SOL has increased over 35% from its June low, created a golden cross and a cup-and-handle pattern on the daily chart.
Public firms, such as Bit Mining, Upexi, and DeFi Development Corp, have just purchased extra SOL tokens
Solana network's daily active addresses have increased in the last 24 hours.
Solana (SOL) was trading at $176.5 on Aug. 12, a more than 9% increase in the last 30 days and 40% above its year-to-date low, according to information from crypto.news.
The token's market capitalization was at $95.1 billion at press time.
The Solana price may continue to pick up steam in light of some bullish trends witnessed over the last week.
In the first place, listed companies have increasingly been acquiring Solana recently to capture a share of the blockchain staking rewards. Among these, Bitcoin mining company Bit Mining, Upexi, and DeFi Development Corp have all recently announced further token buys in recent times, of which the former said it will raise $200 million to $300 million in tranches to buy more Solana and create a separate treasury.
Second, Solana appears to be becoming a burgeoning network for tokenization of real-world assets. Most recently, an historic agreement between the Solana Foundation and R3, clients of which include HSBC, Bank of America, Euroclear, and MAS, looks to use the Solana blockchain for asset tokenization.
Third, the network maintains solid technicals that may underpin future gains. The daily active addresses have surged over 16% in the last day. A jump like this in activity typically indicates increasing user participation and may shore up bullish momentum in the coming weeks.
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SOL is a golden cross**
SOL has made a golden cross on the daily chart. The pattern typically appears when the 50-day simple moving average overcomes the 200-day one, and it is traditionally considered a buy signal in the crypto trading world.
The same pattern was observed last year in October. Then, SOL jumped close to 50% over the subsequent three months.
This time, if the price's historical trend is followed, SOL can potentially enter into a similar rally, which should propel its price up to $240.
Besides the above setup, SOL has also formed a cup-and-handle pattern, whose base is at $126.4 and neckline resistance level around $187.74.
The gap between the cup's top and bottom boundaries is about 48%. Extending the same move from the top boundary, SOL targets a possible rally to $248, which is just beyond the level set by the golden cross above.
When both a golden cross and a cup-and-handle pattern show up, it's basically two bullish technical indicators converging, which traders commonly view as a high-probability continuation setup for a trend higher.
But this bullish forecast would be negated if the price drops below the nearest support level ,which is at $156. This mark is the lower part of the handle.
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