Solana Faces Critical Technical Test Amid Bullish Fundamentals
Since April, Solana’s price has surged by over 150%, reviving hopes for hitting its all-time high. Though, a technical obstacle looms large. A rising wedge formation on the daily chart suggests potential for a sharp reversal.
This wedge formation features two ascending trendlines that will soon converge, signaling a possible price dip.The technical indicators aren’t helping either. The Relative Strength Index and MACD are showing weakening momentum,hinting at a bearish breakthrough. If SOL stays within this pattern, prices might drop, possibly reaching the $200 support level.
Despite these headwinds, strong fundamentals could buoy Solana’s price. Regulatory approval for spot solana ETFs is likely, with securities firms like Bitwise and 21Shares leading the charge.
The Alpenglow upgrade, due in the next few months, will also play a role. This major overhaul will shift Solana from proof-of-authority to proof-of-stake and boost network speed.
Moreover, institutional investors are increasingly bullish. Treasury companies like Forward Industries and DeFi Development have amassed substantial Solana holdings.Their continued accumulation could drive prices higher despite technical challenges.
With these forces clashing, it’s clear that Solana stands at a pivotal moment. Will technical resistance prevail, or will robust fundamentals lead the way? Time will tell whether SOL can突破 its rising wedge and soar higher, or face a correction.
