Key Insights
- Solana price has crashed by 50% from its highest level in September.
- The token has formed a falling wedge pattern on the daily chart.
- Spot SOL ETFs have continued gaining traction among American investors.
Solana price has suffered a harsh reversal during the past few months, moving from the September high of $253 to the current $127 level. There are still a few reasons why the SOL price could rebound soon, possibly in December or earlier next year.
Solana Price to Benefit from the Upcoming Alpenglow Upgrade
One of the potential catalysts for Solana price is that the network will launch the Alpenglow upgrade. It will dramatically increase the network’s performance.
One of the most important aspects of the Alpenglow upgrade will be the increase in transaction speed from ~12 seconds to 150 milliseconds. That’s much higher than Ethereum, which handles less than 30 transactions per second.
The surge in throughput will be made possible by the introduction of Votor and Rotor. Rotor will handle timestamping and sequencing of transactions, while Votor will finalize blocks through direct cryptographic voting.
Alpenglow is Solana’s most significant upgrade so far. It aims to help the network compete with Ethereum and other layer-1 and layer-2 networks.
It is common for cryptocurrencies to rally ahead and after a major network upgrade. However, in some instances, some tokens rarely move or even drop after an upgrade. A good example of this is Avalanche, which remained under pressure after the Granite upgrade.
SOL Accumulation is Going On
The other bullish catalyst for Solana price is that there is an accumulation going on. A good example of this is what is happening on Wall Street, where demand for the recently launched SOL ETFs is rising.
The most recent data shows that all spot SOL ETFs have had inflows since their approval. These funds had a net inflow of $108 million last week, bringing the cumulative inflows to $618 million.
The Bitwise Solana ETF has accumulated $527 million in inflows and now holds $606 million in assets. Grayscale’s GSOL has had $77.7 million in inflows and $147 million in assets. The other top Solana ETFs, in terms of assets, are offered by companies such as 21Shares, Fidelity, VanEck, and Canary.
Most importantly, there are indications that Solana ETFs may experience increased inflows in the coming months. That’s because these funds now have net assets of $888.25 million, representing 1.15% of Solana’s market capitalization.
In contrast, Ethereum and Bitcoin ETFs have assets that are over 5% of their respective market capitalization.
Solana Price Technical Analysis Suggests a Rebound is Possible
Solana price technical analysis suggests that it has more upside potential in the coming weeks or months. It has formed a falling wedge pattern, which consists of two descending and converging trendlines. A bullish breakout usually happens when the two lines are near their convergence.
The token has already moved above the upper side of this pattern and is now attempting to retest it. A break-and-retest pattern usually confirms the breakout.
SOL price is also forming a double-bottom pattern at $120 and a neckline at $145, its highest level on November 26. Therefore, the combination of a falling wedge and a double-bottom pattern is a sign that the coin will rebound eventually.
Such a move may push it to the next key resistance level at $200. However, a drop below the double-bottom pattern at $120 will invalidate the bullish outlook.
Solana Ecosystem Growth
Another bullish catalyst for the Solana price is the strong growth of its ecosystem.
Data compiled by RWA shows that the network has become the third-biggest player in the real-world asset tokenization industry, with over $757 million in assets. The top players in the network are BlackRock’s BUIDL and Ondo US Dollar Yield.
Solana has also evolved into one of the top chains in the stablecoin industry, with a supply of over $14.9 billion. Its stablecoin volume has risen by 7% in the last 30 days, with the number of holders rising by 3% to 12.2 million.
Solana is also a big player in the decentralized exchanges (DEX) and the non-fungible token industries. That could help boost its network fees.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
