Solana (SOL) has stood out as a standout performer in the current market cycle, soaring from a low of $8 post-FTX turmoil to a peak of $210 in March 2024, translating to an impressive gain exceeding 2000%.
Nevertheless, challenges in the market during Q2/Q3 led the altcoin to consolidate above the $120 mark.
Peter Brandt, a respected technical analyst, has highlighted that SOL’s six-month period of price consolidation has positioned it well for a potential upward movement. He remarked,
“It appears that $SOL $SOLUSD successfully maintained support at $120. This situation could evolve into a rectangular pattern capable of triggering a substantial rally.”
If this scenario plays out, breaking out of a rectangular pattern typically results in gains similar to the pattern’s height, indicating a potential move towards $280.
Can BreakPoint Catalyst Drive SOL’s Price Higher?
The Solana BreakPoint event unfolded with significant announcements and increased institutional interest in the layer 1 alternative blockchain.
Various entities, such as asset management firm Franklin Templeton and tokenization service provider Securitize, have expressed intentions to establish a presence on the Solana network.
Moreover, reports suggest that Citi, a major bank, is evaluating tokenization and digital payment capabilities using Solana.
Furthermore, Solana’s infrastructure is poised for substantial improvements, with the introduction of Firedancer, its second validator client, on the testnet, with potential migration to the Mainnet in the near future.
Firedancer is anticipated to boost Solana’s transaction capacity to 1 million transactions per second, a significant increase from the current 3000 transactions per second, enhancing network decentralization by reducing reliance on a single validator client.
Despite a notable surge in network activity by late August, as evidenced by the rise in daily active addresses from under 2 million to over 5 million on September 10, growth has since slowed down.
This deceleration might postpone a robust breakthrough above $150 in the immediate future. Although the altcoin has gained approximately 14% from its $128 support level, it encountered resistance near the 200-day Moving Average (MA) at over $154.
If it manages to surpass the 200-day MA, potential bullish targets in the short term include $160 and $180.