Solana price forms bullish double bottom, eyes upside to over $110 on breakout

Solana price has rebounded by 6% since its Monday drop as investor confidence returns to the market. It is in the process of forming a double bottom pattern, which could position it for a significant trend reversal in the coming sessions.

According to data from crypto.news, Solana (SOL) price rose 3% to $88.5 on Wednesday, bringing its market cap to over $50 billion. Its gains came amid its daily trading volume rising by 22% to $4.96 billion.

Solana price rose after U.S. President Donald Trump announced an extension of the Iran ceasefire, easing broader macro fears and leading to a relief rally across the entire crypto sector.

The token has also benefited from institutional players doubling down on the token. Notably, Goldman Sachs recently disclosed that it holds $108 million in spot Solana ETFs. At the same time, assets in Solana spot ETFs, including those from Bitwise and Fidelity, have now surpassed $1 billion.

Solana is now in the process of completing a double bottom pattern on the daily, a setup that typically signals a bullish reversal on breakout from the neckline of the pattern. For Solana price, the neckline stands at $97.8, just 10% above the current price.

Solana price is forming a double bottom pattern on the daily chart — April 22 | Source: crypto.news

A decisive breakout could position the token for an upside to $118 with no more major resistance levels on the way. The target is calculated by adding the height of the double bottom formed to the point at which the breakout occurs.

Meanwhile, the Solana weekly liquidation heat map shows a large cluster of dense liquidity at $91, where more than $20.5 million in short positions are currently sitting. If the price reaches this level, it could trigger a short squeeze that accelerates the move toward the neckline.