The digital asset Solana has shown a strong bullish trend, taking its price to unprecedented levels not seen since the beginning of the year. With the momentum it has gathered, it is predicted that the token could even break its previous all-time high. This prediction is widely held among users on the prediction market platform, Polymarket.
Continuous Rally Boosts Solana’s Price
Over the course of the past week, the price of Solana has observed a sustained rally. Observations from Polymarket indicate that the likelihood of the digital token achieving a new peak within this year has experienced a significant increase. Furthermore, technical analysis indicates that there could be the potential for further growth in the upcoming month.
Predictions of an All-Time High
The Solana token recorded a six-day consecutive rise, culminating at a top value of $240. This is a vast leap of 150% from its lowest value registered this year; elevating its market capitalization to more than $126 billion.
As at now, the prediction is that the token could surge even higher. Polymarket has conducted a poll with assets exceeding $800,000 and results show that 57% of participants believe that the coin will reach an all-time high within this year – this is the highest such prediction to date. Interestingly, these odds have consistently increased, rising from a previous low prediction of 19% in June.
There are three possible explanations for a further 23% surge in the SOL price and the potential to reach its all-time high, the most critical being the expected approval of SOL spot ETFs.
Increased Approval Odds for Solana ETF
The probability of the Solana ETF being approved within this year has soared to over 90%. It is likely that these approvals will lead to large influxes from American retail and institutional investors who perceive cryptocurrencies as viable alternative investment options.
Anticipation of Alpenglow Upgrade
The SOL price is also expected to gain momentum in the lead up to the anticipated Alpenglow upgrade. This upgrade will introduce novel features, such as transitioning the network from proof-of-authority to proof-of-stake, increasing transaction speeds to more than 107,000 per second. This has historically proven to result in a market rally preceding major upgrades.
Influence of Fed Rate Cuts
In addition, the impending rate cuts from the Federal Reserve, which are expected to commence next week, could also positively impact the SOL price. These cuts could potentially stimulate risk-taking among investors, which would benefit cryptocurrencies like Solana.
Technical Analysis of Solana’s Price
The daily time frame chart reflects that Solana’s price has been on a robust upward trajectory over the past few months. Rising from a low of $95 at the start of the year to its current high of $240.
The Average Directional Index also shows an upward trend, currently positioned at its highest point since the beginning of August, indicating building momentum.
Furthermore, the Relative Strength Index has escalated to 70, its highest position since July. Therefore, it is projected that further growth will ensue as the market continues its bullish trend targeting its all-time high of $295. With a breakthrough above this level, it would indicate further potential for gains, possibly exceeding $300.
