- SOL’s prolonged price consolidation could set it up for a massive rally.
- Several institutions are considering opening a store on the network.
Solana (SOL) has emerged as one of the outliers of this market cycle. It has gone from a low of $8 after FTX imploded to a high of $210 in March 2024. That’s a gain of over 2,000%.
However, market headwinds during the second and third quarters pushed the altcoin to consolidate above $120.
According to renowned technical analyst Peter Brandt, SOL’s six-month price consolidation was an excellent setup for an upward advance. note,
“It appears that $SOL $SOLUSD has held support at $120. This could become a rectangle capable of launching a considerable advance.”
Source: X
If so, breaking out of a rectangular channel tends to generate gains similar to the height of the channel. Theoretically, this would mean a rise towards $280.
Will BreakPoint help SOL price?
As expected, the Solana BreakPoint event saw major announcements and interest from institutions in the alternative layer 1 blockchain.
From asset managers like Franklin Templeton to tokenization service providers like Securitize, all have plans to establish themselves on the Solana network.
Additionally, Citi, a leading bank, is reportedly exploring its tokenization and digital payments capability through Solana.
Additionally, Solana’s infrastructure is set for a massive overhaul as Firedancer, its second validator client, has hit the testnet and could soon hit the mainnet.
Firedancer is expected to bring Solana 1 million transactions per second, up from 3,000 transactions per second currently.
Besides improved processing, this would make the network more decentralized by reducing a single point of failure based on a single validator client.
However, network growth has stalled after remarkable expansion in late August, as illustrated by daily active addresses.
The number of cases rose from less than 2 million in August to more than 5 million on September 10, but then fell again.
Source: Artemis
This could delay a strong move above $150 in the near term. The altcoin is up about 14% from its $128 support but has stalled near the 200-day moving average (MA) above $154.
Should it reclaim the 200-day moving average, $160 and $180 could be the next short-term upside targets.
Source: SOLUSD, TradingView
