Solana price has rebounded in the past few days, moving from a low of $190 last week to the current $208. SOL token remains about 120% above the year-to-date low. Here are some of the top reasons why the SOL price will rebound and possibly reach an all-time high.
Solana price technicals points to a rebound to an all-time high
The daily timeframe chart shows that the Solana price has rebounded from the year-to-date low of $95 in April to over $200 today.
It has remained above the ascending trendline that connects the lowest swings since June 23rd. Also, the coin has remained above the 100-day Exponential Moving Average (EMA), which is a bullish sign.
It has also moved above the Major support and resistance level of the Murrey Math Lines tool. Also, it moved above the Ichimoku cloud indicator, a sign the bulls are in control.
SOL token has also formed a megaphone pattern, which is characterized by two rising and diverging trendlines.
Therefore, the most likely Solana price forecast is highly bullish, with the initial target price being at the ultimate resistance level at $250, which is along the highest point on September 17. A move above that resistance level will point to more upside, potentially to the all-time high of $295.
A drop below the ascending trendline that connects the ascending trendline will invalidate the bullish forecast.
SOL price has major catalysts in October
Solana price has soared in the past few months as investors wait for several important catalysts, including the Federal Reserve interest rate cuts, ETF approvals and inflows, and the Alpenglow upgrade.
The first major catalyst for the Solana price is the Federal Reserve, which has started cutting interest rates. It cut rates by 0.25% this month, and analysts expect it to deliver more cuts in the coming weeks. Cryptocurrencies do well when the Fed is cutting rates.
The second main catalyst for the Solana price is the upcoming SOL ETF approvals as the deadline for most of these coins comes up in October.
There are signs that these ETFs will have substantial demand from American investors. For example, the recently-launched Staked Solana ETF (SSK) has had inflows in each week since its launch. It now has over $300 million in assets under management.
Also, the recently launched spot Dogecoin and XRP ETFs have had substantial inflows in the last seven trading days. Solana, as one of the top Ethereum rivals, will also have substantial demand during the month.
Last but not least, Solana price will react to the upcoming Alpenglow upgrade, which is expected to happen later this year or in the first quarter of next year.
The upgrade will introduce sub-second finality, which will reduce the block finality from 12 seconds to between 100 and 150 milliseconds. These speeds will be faster than that of Google and Visa.
Solana’s throughput will jump from 65,000 per second to 107,000, while validator admission ticket will drop from $60,000 to $1,000. It is common for a token to jump before and after a major upgrade as we saw with BNB after the Maxwell upgrade.
The post Solana price prediction: top 3 reasons SOL will surge in October appeared first on Invezz
