Solana News Today: Solana Surges 18% on Upgrades and Institutional Adoption

Solana’s SOL token surged nearly 18% in recent trading sessions, reaching $181 as of August 9, driven by significant technical upgrades and growing institutional interest [1]. This rally has intensified speculation that the token could break through the critical $185 resistance level, a threshold analysts believe could trigger a near-40% price increase to $256 [1]. A successful close above this level would signal a potential start of a sustained bull phase.

The surge is attributed to key technical upgrades such as the Firedancer client and the Alpenglow consensus upgrade, which are designed to enhance the network’s scalability and performance [1]. These developments, led by Solana co-founder Anatoly Yakovenko and the Jump Crypto team, are part of a broader effort to improve Solana’s web-speed block times and position the blockchain for a scaling inflection in 2025 [1].

Institutional adoption has also played a crucial role. ARK Invest’s stake in Solana and the recent inclusion of SOL in U.S. 401(k) retirement plans have expanded institutional access to crypto investments [1]. The inclusion in retirement plans taps into over $8.7 trillion in potential savings, adding a new layer of liquidity to the market and unlocking growth for Solana and the broader crypto space [5].

On-chain data shows $15.18 million in exchange inflows on August 9, suggesting some investors may be preparing to offload positions as prices rise [1]. However, a 10% drop in 24-hour trading volume compared to the prior day has raised questions about sustained market participation at current price levels [1]. The imbalance in liquidation data further underscores the bullish bias, with long liquidation leverage totaling $436.74 million, far exceeding the short-side leverage of $23.79 million [1].

From a technical perspective, Solana recently moved above a descending trendline, attributed to upward momentum, with the RSI at 57, below the overbought threshold [1]. This suggests further gains may be possible in the short term. However, the Supertrend line remains at $190.33, indicating an active downtrend that could resurface if buyers fail to maintain control above key resistance levels [1].

The broader market environment has supported this optimism, particularly with the U.S. president’s executive order allowing cryptocurrencies in 401(k) accounts. Solana experienced a 2% price increase and a 40% jump in trading volume within 24 hours of the announcement [5].

Analysts remain divided on Solana’s future price trajectory. Some forecasts suggest a potential move to $265.46 by the end of 2025 [7], while others, including Gemini, predict a $220 level may prove difficult to clear in the near term [6]. Despite these divergences, favorable chart patterns and increased institutional engagement support the possibility of a significant price rally.

With regulatory developments—such as potential spot altcoin ETF approvals—on the horizon, Solana’s next steps will be closely watched. Whether the token surpasses $185 in the coming days will determine if it continues its upward momentum or enters a period of consolidation [1].

Source:

[1] Solana – How THIS level could help SOL prices rally 40% (https://ambcrypto.com/solana-how-this-level-could-help-sol-prices-rally-40/)

[5] Best Altcoins to Buy: ETH and SOL Rise as U.S. Investors Could Soon Add Crypto to 401k (https://icobench.com/news/best-altcoins-to-buy-eth-and-sol-rise-as-u-s-investors-could-soon-add-crypto-to-401k/)

[6] Gemini Predicts Solana Might Not Cross $220 (https://coincentral.com/gemini-predicts-solana-might-not-cross-220-but-charts-show-this-0-009-coin-could-rally-10x-soon/)

[7] Solana Price Prediction (https://www.bitget.com/price/solana/price-prediction)