Don’t Count Solana Out Yet — 3 Reasons It May Rally 20% After Crash

Easing geopolitical tensions may allow buying momentum to return.

The formation of a bullish flag pattern signals a potential 20% rise.

Rising odds of a Solana ETF approval add to its recovery outlook.

The price of Solana (SOL) recently fell alongside the broader cryptocurrency market, adding pressure on traders and sparking concerns about its future. However, analysts suggest that it may be far from finished. Several signals are developing on the charts and in the market that may put the asset back on a recovery path.

Although the drop was painful for many, a combination of technical signals, shifting sentiment, and growing optimism about an exchange-traded fund (ETF) could help lift its price in the coming days. Market watchers say this potential rise could be a remarkable opportunity for a 20% move upward if certain conditions align.

Easing Fear Could Provide Support

Some traders say the geopolitical tensions that weighed on the market last week may ease soon. According to analysts, once this fear drops, buying momentum may return and help prices move upward again. The ease in tensions has historically supported rallies across many digital currencies, and this time it may be no different for SOL. Market participants are closely monitoring this shift in sentiment, noting its potential to serve as a strong foundation for recovery. If worries diminish, buying pressure may increase, adding momentum to a potential upward move.

Bullish Flag Suggests Possible Recovery

The technical view for Solana is supported by a bullish flag pattern on its daily price chart. The formation of this pattern typically signals a temporary pause in the trend and often precedes a remarkable upward move once the price breaks above the upper boundary.

According to technical analysts, the flag signals an unprecedented opportunity for the price to rise by nearly 20%. Market traders are closely watching this pattern’s progress. If buying picks up and the price exits the flag, it could reflect a superior and profitable opportunity for those who are positioned to benefit from it.

Approval of a Solana ETF May Provide a Positive Boost

The growing optimism about a Solana Exchange-Traded Fund (ETF) is another innovative and lucrative consideration. Market participants view this as a groundbreaking move, adding greater confidence and liquidity to the ecosystem

The approval of a fund would allow a wider range of investors to gain exposure to SOL without needing to directly buy the token, adding unmatched depth and stability to its market. Some traders say this may produce a ripple of buying, reflecting a remarkable and profitable opportunity for price recovery.

Rising Market Confidence Fuels Expectations for SOL Recovery

For now, the outlook for Solana hangs on a combination of technical signals and growing market confidence. The ease of geopolitical tensions, a bullish flag formation, and the potential approval of a Solana ETF are all factors adding to a view that the price may soon reverse and move upward.

Market analysts say this recovery could be dramatic, marking a 20% rise if buying picks up and sentiment strengthens. Nevertheless, traders remain cautious and are closely following these signals to gauge whether a sustained recovery is underway.