Solana price continued its strong momentum this week, and the alignment between its technicals and fundamentals points to more gains in the coming weeks.
Summary
- Solana price has several bullish catalysts that will push it higher.
- The SEC will likely approve numerous ETFs later this year.
- SOL price has numerous bullish technicals.
Solana (SOL) token jumped to a high of $255 on Thursday, Sep. 18, its highest level since January. It has jumped by over 163% from its lowest level in April.
The main catalyst that will push Solana price parabolic is that the final deadline for several spot Solana ETF approvals is nearing. For example, the deadline for the Grayscale Solana Trust is Oct. 10, while that of other funds is on October 16.
Polymarket data shows that the odds of the agency approving these ETFs have continued to rise in the past few months.
As one of the biggest cryptocurrencies, there is a high likelihood that these funds will have robust inflows from investors who view cryptocurrencies as viable alternative assets. For example, the recently launched Solana staking ETF has already raised over $289 million in assets.
Alpenglow upgrade to boost SOL price
Solana is also working on the Alpenglow upgrade that will introduce new features to accelerate its growth. One of the most notable features will be the transition from the current proof-of-authority model to proof-of-stake.
The new Solana will also have a substantially higher throughput, with finality slashed from 12 seconds to between 100 and 150 milliseconds. Transactions per second will surge to about 107,000.
This growth will be notable as Solana is the most active player in the blockchain industry, with Nansen data showing that it handled over 1.9 billion transactions in the last 30 days, much higher than other popular chains like Ethereum, Sui, Cardano, and Polygon.
Most notably, the latest data shows that Solana is becoming a major player in key industries like trading, stablecoin settlements, and real-world asset tokenization. For example, Solana is closing the gap with Nasdaq on the number of trades settled per day.
The other key fundamental is that companies are building SOL treasuries. CoinGecko data shows that these companies now hold coins valued at over $3 billion, a trend that may continue to grow.
Solana treasury companies are different from those holding Bitcoin because of its staking feature. This means that these companies are actively generating an annual return of about 8% from their staked assets.
Solana price technical analysis points to more gain
The daily timeframe shows that the SOL price has highly bullish technicals. It remains above all moving averages, while the Average True Range has increased, a sign that SOL price is gaining momentum.
Top oscillators like the Relative Strength Index and the MACD have continued to rise. Therefore, this momentum will continue until the SOL price advances to the all-time high of nearly $300.
