news 
Solana Set for 54% Rally? DeFi Development Invests $100 Million as JitoSOL Gains Anchorage Support
The cryptocurrency market is abuzz with the news that Solana (SOL) has formed a bullish flag pattern on its daily chart, potentially indicating an impending rally of approximately 54%. This development comes amid significant updates in the Solana ecosystem, including DeFi Development’s plan to invest $100 million into the asset. Furthermore, JitoSOL, a leading liquid staking token on the platform, has secured Anchorage Support.
DeFi Development’s decision to allocate a substantial amount of capital towards SOL is noteworthy, as it may impact market sentiment and potentially drive prices higher. The company’s rebranding in April focused exclusively on Solana, indicating their commitment to the asset’s growth. By mirroring MicroStrategy’s strategy of accumulating SOL, DeFi Development has set its sights on buying a substantial amount of cryptocurrency.
According to chart analysis, the bullish flag pattern suggests a pause before a potential breakout. If confirmed, this could lead to a strong price increase. Currently, SOL is hovering below the 50-day exponential moving average (EMA) at $151.38. A successful second test and rebound from the breakout zone, near $145-$148, would confirm the flag’s validity.
Solana has broken above the upper trendline of this pattern around July 1 and saw a 6% increase before facing resistance at the EMA. If SOL can maintain its current support level and RSI continues to rise, it may support the bullish flag breakout discussed earlier. However, if the indicator turns down again, it could signify weak momentum and a failed breakout attempt.
Despite the potential rally, Solana’s Relative Strength Index (RSI) is trending towards the neutral zone at 50, indicating caution ahead.
Source: coinchapter.com
