Solana Price Forms Bullish Double Bottom, Targets Over $110 on Breakout

Solana's price has been on an upward trajectory since its Monday drop, rebounding by 6% and forming a double bottom pattern. This pattern suggests that the token may be poised for a significant trend reversal in the coming sessions.

According to data from crypto exchanges, Solana's price rose to $88.5 on Wednesday, with its market cap exceeding $50 billion. The token's gains were driven by a combination of factors, including easing geopolitical tensions and rising trading volume.

The double bottom pattern is formed when a security's price falls to a certain level, bounces back up, and then drops again before rebounding once more. In Solana's case, the neckline of the pattern stands at $97.8, just 10% above the current price. A decisive breakout above this level could position the token for an upside to $118 with no major resistance levels on the way.

The Solana weekly liquidation heat map shows a large cluster of short positions near $91, which could trigger a short squeeze if the price reaches that level. This would likely accelerate the move toward the neckline and potentially lead to further gains for the token.