Solana has formed a golden cross pattern on the daily chart, a bullish technical pattern that often appears before extended bull runs, yielding at least a 40% gain for this altcoin.
This pattern previously pushed SOL from $155.01 to $293.00 in just seven days in October 2024 when similar conditions emerged.
A golden cross occurs when the 50-day simple moving average crosses above the 200-day simple moving average, creating what cryptocurrency traders consider a bullish momentum indicator.
Currently, many traders and analysts predict SOL will break out of the current trading range of $174–187, potentially pushing the token price to the 2021 peak of around $250.
SOL Bullish Golden Cross Targets Resistance Level of $190 as Arthur Hayes Joins Treasury Movement
At the time of writing, Solana is trading at $178.06, up 0.29% as it recovers from a daily low of $173.69. This recovery comes after unchanged CPI data, boosting the likelihood of a rate cut in September to over 86%.
Market participants view this development as a widespread optimistic sentiment throughout the cryptocurrency space, with Ethereum leading a 4% growth, pushing its price to a three-year high above $4,400.
The explosive performance of Ethereum has raised the question of whether Solana can attract enough attention to push the price above the current weak resistance level.
Cryptocurrency analyst Honeyxbt expressed moderate skepticism, noting that she expects stronger performance from SOL speculators.
She stated that although the golden cross pattern has appeared, the inability of the price to surpass the resistance zone of $190–205 remains disappointing.
Additionally, she acknowledged that SOL still maintains technical strength and is in an uptrend, trading much better than the 200-day EMA. This token just needs additional momentum to sustain its bullish trajectory.
Recently, Upexi, recognized as the largest treasury company of Solana, appointed BitMEX co-founder and renowned cryptocurrency speculator Arthur Hayes as the first member of its advisory board.
Hayes will oversee the development of the company's treasury bond portfolio for $SOL.
Hayes played a key role in Ethereum's recent 60% recovery by publicly supporting Tom Lee's Ethereum Treasury strategy, which has accumulated billions of dollars in ETH while supporting the coin's rise to new heights.
Currently working with Upexi, which has secured $300 million to purchase Solana tokens to expand its treasury, Hayes brings proven expertise to the organization's SOL adoption efforts.
If this approach proves effective, other companies pursuing the Solana treasury strategy, including BIT Mining and DeFi Development Corp., may accelerate their acquisition of SOL.
Approval of the SOL ETF: Success Likelihood is 90% by 2025
Another important catalyst supporting Solana's formation of a golden cross towards the $250 level is the pending approval process for the SOL ETF.
In June, seven major issuance companies filed or amended applications for a spot Solana exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).
These applications include submissions from renowned asset management companies such as VanEck, Fidelity, 21Shares, Franklin Templeton, Grayscale, Bitwise, and Canary Capital.
According to Bloomberg's latest ETF analysis, Solana leads the approval likelihood with a 90% chance of being approved by 2025.
Coupled with the accumulation by the treasury company and strong on-chain activity from memecoins, revenue from DApps such as PumpFun, the BONK ecosystem, and an expanding supply of stablecoins on the Solana blockchain, SOL seems to have a competitive position against Ethereum to become the next large-cap opportunity.
Technical Analysis: SOL Golden Cross Flip Paves the Way to $246
From a technical perspective, the daily SOL/USDT chart shows a bullish structure after breaking out of a descending channel and confirming a golden cross, where the 50-day SMA has crossed above the 200-day SMA.
The price is trading around $177, sitting between the important resistance level of $187.89 and support from the 50-day and 200-day SMAs near $167.
A decisive close above $188 would pave the way for the upper resistance level of the channel at $225, with a potential medium-term target near $246 if macro conditions, including the possibility of a rate cut on September 25, align with the bullish momentum. However, failing to break above the $188 threshold may see the price retest the support area at $167, and a break below this level would diminish bullish prospects.
