Solana ETF Could Be Next: SOL Price Forming Bull Flag

Solana Futures Coming Next?

Solana (SOL) continues to gain momentum in the crypto market, with hints of an upcoming launch of SOL futures on the CME Group platform, signaling growing institutional interest. If confirmed, this development would mark a significant milestone for Solana, as futures contracts on a major exchange provide legitimacy and accessibility for institutional investors. 

Known for its high-speed, low-cost blockchain capabilities, Solana has already positioned itself as a leading platform for decentralized applications and DeFi projects. The addition of CME-listed futures could further enhance SOL’s market appeal, boost liquidity, and solidify its status as a top-tier cryptocurrency in the evolving digital asset landscape.

SOL Price Analysis 

The 4-hour chart illustrates a robust bullish trajectory for SOL following its breakout from a descending channel, marking the conclusion of a corrective W-X-Y structure. This breakout led to an impulsive five-wave rally, with SOL reaching a high of $294 before entering its current consolidation phase. 

The symmetrical triangle currently forming suggests indecision, often preceding the continuation of the primary trend which is why in this case we can call it a bull flag. This consolidation follows wave (v) development, which could push the price beyond its previous high if bullish momentum sustains. The Relative Strength Index (RSI) on the 4-hour chart remains slightly above neutral teritory, indicating increasing bullish momentum, leaving room for further upward movement.

The immediate resistance is marked by the 0.236 Fibonacci retracement at $264.87, while key support lies at the 0.382 Fibonacci level ($246.54). A breach of either level will confirm SOL’s next direction.

SOL Price Prediction 

The 15-minute chart captures SOL consolidating within a symmetrical triangle after completing wave (v) at $294 on Jan 19. This symmetrical triangle represents a classic correction, likely part of a larger wave (b) within an ABC corrective pattern. Should the price break below the triangle, wave (c) may target the 0.618 Fibonacci level at $216.90, presenting a potential buyer entry.

Alternatively, if SOL breaks above the triangle, it could signal the continuation of a bullish trend, initiating a new impulsive wave. Fibonacci extensions project possible targets for the next rally, with $316.25 (0.786 extension) and $343.03 (1.0 extension) serving as immediate objectives. A successful breach of these levels would confirm bullish dominance, with the final wave potentially reaching $420 (1.618 Fibonacci extension).

RSI on this timeframe suggests a slight bullish divergence, indicating weakening bearish momentum. However, for upward continuation, a decisive close above the 0.236 Fibonacci level ($264.87) with increasing volume is essential.

In all, the main question is whether or not an ABC correction from the all-time high ended or not. In the bullish scenario, we assume it ended on Jan 23. higher low of $242 while in a bearish, a lower one of $216 could be seen.

But in both cases we can expect to see the uptrend continuation and a new all-time high.

Key Levels to Watch

Resistance:

• Immediate: $264.87 (0.236 Fibonacci retracement).
• Key: $316.25 (0.786 Fibonacci extension).
• Major: $343.03 (1.0 Fibonacci extension).

Support:

• Immediate: $246.54 (0.382 Fibonacci retracement).
• Key: $216.90 (0.618 Fibonacci retracement).
• Critical: $195.81 (0.786 Fibonacci retracement).
• Short-Term Target for Wave (v): Above $316.25 if bullish momentum persists.
• Invalidation Zone: Below $216.90, signaling potential reversal to deeper corrective levels.

This analysis integrates multiple technical tools, including Elliott Wave Theory, Fibonacci retracements/extensions, and RSI momentum, to outline potential scenarios for SOL. Current consolidation phases are critical decision points, and breakout or breakdown from these patterns will determine the next significant trend.