Solana price has been in a strong bull run this week as the token jumped to a high of $235, its highest level since January this year. It has soared by 145% from its lowest level this year and has numerous catalysts to push it to a record high if it overcomes key risks.
Solana Price Has Key Catalysts
SOL price could continue rising as key catalysts align. One of the catalysts is the upcoming approval of spot Solana ETFs by the Securities and Exchange Commission (SEC).
The agency has designated October as the month for this approval, and by law, it cannot be postponed. Most importantly, many investors expect that the agency will approve the funds, with the odds jumping to over 90% on Polymarket.
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Solana ETFs are expected to be popular among investors, similar to Bitcoin and Ethereum, which have attracted inflows of over $55 billion and $13 billion, respectively.
Therefore, the upcoming deadline for the Solana ETF approvals could push it parabolic. In most cases, investors will buy before the approval date and then pare back their purchases or sell after it happens.
The other main catalyst for the Solana price is the upcoming Federal Reserve interest rate cuts, which will start on Wednesday next week. A cut will likely bring people to risky assets like Solana and its meme coins.
Further, Solana will undergo the closely-watched Alpenglow upgrade that will introduce new features, including transitioning it from proof-of-authority (PoA) to proof-of-stake.
It will also boost its speeds to over 100,000 transactions per second. SOL is expected to soar as investors await the update, scheduled for the first quarter of next year.
Solana’s price may continue to perform well due to its market share in key areas of the crypto industry, where it is regarded as the most viable alternative to Ethereum. For example, its total value locked in the DeFi industry has jumped to a record high of $27 billion.
SOL Price Technical Analysis
The daily timeframe chart shows that the Solana price has bullish catalysts, including the rising Average Directional Index (ADX), which is a sign that the trend is gaining momentum.
Solana has remained above the 50-day and 100-day moving averages, while oscillators like the Relative Strength Index (RSI) and the MACD have continued rising.
Therefore, these catalysts mean that the token may continue rising, potentially to the psychological level of $295 soon. This target, which is its all-time high, is up by 27% from the current level.
The risk, however, is that SOL has formed a rising wedge pattern, which consists of two ascending and converging trendlines, which are now about to converge. It will need to invalidate this pattern to continue its strong bull run.
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