Solana has pulled back slightly in recent trading sessions, dropping for the third consecutive day on September 16. Despite this short-term correction, multiple factors suggest SOL could be poised for a substantial rally in the coming weeks, potentially jumping 25% to reach new record highs.
The cryptocurrency has maintained its overall upward momentum throughout 2024, moving from a low of $94.95 in April to around $233 currently. This price action comes as derivatives data shows surging demand among investors.
According to CoinGlass data, SOL futures open interest has reached over $16 billion, approaching the important $20 billion milestone. This represents a dramatic increase from the $6.8 billion seen at the start of the year and the $3.64 billion low recorded in March.
The weighted funding rate has also remained positive in recent days, indicating market participants expect higher prices ahead. This combination of rising open interest and positive funding rates often precedes significant price movements.
One key driver behind Solana’s strength is growing institutional adoption. Several companies have begun accumulating SOL in a pattern similar to MicroStrategy’s Bitcoin strategy.
Companies including DeFi Development, Upexi, Sharps, and Sol Strategies have collectively purchased over 6.5 million SOL tokens worth more than $1.5 billion. This trend appears set to continue as Sol Strategies recently listed on Nasdaq, and other companies express interest in adding SOL to their treasuries.
Unlike Bitcoin treasury companies, those holding Solana benefit from staking yields of approximately 8%. This means a company with $500 million in SOL holdings can generate around $40 million annually in staking revenue, creating an attractive value proposition for corporate buyers.
The upcoming Federal Reserve interest rate cuts may provide another tailwind for SOL. Lower rates typically encourage risk-taking in financial markets, potentially benefiting cryptocurrencies in general and Solana’s ecosystem in particular.
Perhaps the most compelling near-term catalyst for Solana is the potential approval of spot SOL ETFs by the Securities and Exchange Commission, expected in October. Similar to how Bitcoin and Ethereum ETFs impacted their respective prices, SOL ETF approvals could drive substantial institutional capital into the asset.
From a technical perspective, SOL’s chart shows strong bullish signals. The price has moved above the Ichimoku cloud indicator on the weekly timeframe, confirming a bullish breakout. It has also climbed above the 50-week Exponential Moving Average.
The MACD indicator continues rising and has crossed above the zero line, while the Relative Strength Index approaches the overbought level of 70. These technical factors suggest continued upward momentum.
Based on current price action and supporting fundamentals, analysts project SOL could target its all-time high of $295, representing approximately 25% upside from current levels. However, a drop below $200 would invalidate this bullish outlook.
Solana’s recent price pullback may present a favorable entry point for investors looking to position themselves ahead of these potential catalysts.
The post Solana (SOL) Price: All Signs Point to a Record-Breaking Q4 Rally appeared first on Blockonomi.
Also read: Sui (SUI) Price: Technical Pattern From Previous 400% Rally Reappears on Charts
