Solana price looks poised for an upside rally ahead of the Alpenglow upgrade, supported by growing adoption of the Solana blockchain and strong onchain growth metrics.
Summary
- SOL price is showing signs of a potential upside move, with some indicators flashing bullish signs.
- Solana network’s Alpenglow upgrade has secured the necessary votes to commence.
- Trump family-backed WLFI’s USD1 stablecoin has launched on Solana today.
For the uninitiated, the Alpenglow upgrade is believed to be the biggest protocol upgrade in Solana’s history. It will reduce transaction finality times on Solana from the current 12.8 seconds to approximately 150 milliseconds.
To simplify the technical jargon, this represents a 100-fold increase in Solana’s transaction speed, potentially making Solana the fastest layer-1 blockchain, surpassing Sui and even exceeding the speed of standard Google searches.
With the proposal for the upgrade securing over 99.6% votes in support as of press time and only two days remaining in the validator voting window, the upgrade appears all but confirmed, setting the stage for Solana to undergo its most transformative performance leap to date.
As of press time, Solana (SOL) was trading at $199, up 27% from this month’s low and 88% above its lowest point this year.
There are three specific catalysts, besides Alpenglow, that could bring strong gains for SOL ahead of the upgrade.
First, World Liberty Financial (WLFI) has recently launched its stablecoin USD1 on the Solana blockchain. The development will enhance liquidity for DeFi protocols on Solana and hence support SOL price appreciation in the long term.
Another factor that could support SOL’s gains is the strong growth of perpetual trading volume on the network. Notably, perpetual volume reached a new monthly record of $43.88 billion in August, a sign of a jump in demand from investors, which could help fuel gains for the token.
Further, Solana has also experienced a strong growth in its DeFi ecosystem lately. Per data from DeFiLlama, the total value locked (TVL) on the platform had hit an all-time high of $30.5 billion on Aug . 29, significantly higher than $23.9 billion seen earlier this month.
At the same time, the market cap of stablecoins on the network climbed 8.3% over the past seven days to more than $12.8 billion, a sign of expanding liquidity and strengthening user engagement across Solana’s DeFi protocols, both of which could act as powerful tailwinds for SOL price momentum.
On the daily chart, SOL price has been trading within a descending triangle pattern for the past six weeks. Such a pattern is typically considered bearish, as it reflects lower highs converging toward a flat support level, suggesting selling pressure from bears.
The Supertrend indicator has, however, flashed a green signal as it shifted below the price level, marking a buy signal. Additionally, the MACD lines have turned upward, with the MACD line crossing above the signal line—a sign of strengthening bullish momentum.
If SOL price manages to confirm a breakout above the upper trendline of the triangle pattern at $203.49 by the close of the current session, it could trigger a rally toward $257. This target represents the projected move based on the breakout and implies nearly a 30% upside from current levels.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
