Solana Price Forms Megaphone Pattern As Key Catalysts Align

Solana price experienced a positive performance in September. It jumped for the fourth consecutive month and is nearing its all-time high. SOL price was trading at $220 on Wednesday.

Also, its giant megaphone pattern, along with numerous bullish catalysts, suggests a strong rebound in September.

Solana Price Has Formed a Giant Megaphone Pattern

On the three-day chart, Solana price has surged from $95.50 in April to $218. This marks an impressive 130% price rebound. SOL price has surpassed the 50-day EMA and retested the strong pivot point of the Murrey Math Lines.

The coin has also jumped above the Ichimoku Kinko Hyo cloud, indicating a strong uptrend. Additionally, the Relative Strength Index (RSI) and the MACD indicators have continued to rise.

Most importantly, the coin has formed a giant megaphone pattern, which is a common bullish continuation sign. This pattern resembles a megaphone in that it has two ascending and diverging trendlines. It has now bounced above the lower side of the wedge pattern.

Additionally, the coin has recently formed a hammer candlestick pattern. It’s a common bullish reversal pattern characterized by a small body and a long lower shadow.

Solana price outlook remains strongly bullish. The next immediate target is the Murrey Math Lines’ ultimate resistance level at $250.

A move above the upper side of the wedge pattern will point to more gains. It could reach an all-time high at $294. On the flip side, a drop below the major support and resistance level at $197 will invalidate the bullish SOL price forecast.

Solana Price Momentum Builds Ahead of SEC Decision

Numerous bullish catalysts support the bullish outlook for the Solana price. One key catalyst is the SEC’s upcoming decision on Solana ETFs. The agency is expected to approve or reject the filings in October.

Polymarket users have boosted their odds of this approval to over 90%. Recently, Eric Balchunas, a senior ETF analyst at Bloomberg, stated that he was 100% certain the agency would approve these funds.

The recent listing guidelines for crypto ETFs noted that the agency will accelerate the approval of tokens with existing regulated futures. Solana futures already exist, and ETFs based on them are already available.

Rejecting these ETFs won’t stop the momentum. Issuers like Canary and Bitwise may pivot their strategy. They could follow Rex-Osprey’s lead.

Rex-Osprey has already listed a spot staking Solana ETF under the Investment Company Act of 1940. It has recently used the same approach to list spot XRP and Dogecoin ETFs.

There are signs of substantial demand for crypto ETFs, which will boost SOL price. For example, Bitcoin and Ethereum ETFs have had billions of dollars in inflows. Similarly, Solana’s SSK ETF has accumulated over $330 million in assets in the past few months.

Solana Stablecoin Growth is Accelerating

Meanwhile, Solana is gaining substantial market share in one of the hottest areas in the crypto industry: stablecoins. Artemys Analytics data show that the stablecoin supply has increased by 17% over the last 30 days. It has reached a value of over $ 14.4 Billion.

This makes it the biggest blockchain in the industry after Ethereum and Tron. The number of stablecoin addresses on Solana has risen by 2.22% in the last 30 days to 3.9 million. Also, the adjusted transaction volume in Solana’s stablecoin ecosystem jumped by 53% to $272 Billion.

This growth will likely accelerate in the coming months as the impact of the GENIUS Act in the US continues. Additionally, the growth of stablecoins is expected to accelerate as Solana enhances its network speed with the Alpenglow upgrade.

Alpenglow, whose testnet is scheduled to launch in December, will increase its speeds to over 100k transactions per second. All these catalysts will likely increase the SOL price.