Despite $SOL’s recent dip to $131, 55% below its all-time high of $294 recorded two months ago, our Solana price prediction for the rest of the year is bullish.
$SOL is currently trading at $148.85 with a 5.83% weekly increase, though the monthly trend is bearish (-27.42%).
Luckily for $SOL holders, key technical indicators point to a strong buy signal as the token is heading toward a rebound.
Let’s unpack what the charts and recent ecosystem developments tell us about the $SOL price forecast.
$SOL Escapes the Death Cross Formation
$SOL faced significant downward pressure this morning as it reacted to a large sell order block. However, $SOL’s price bounced off as some investors saw the drop to $142 as a buying opportunity and placed substantial buy orders.
The current price is above key long-term simple moving averages (50-day and 200-day SMAs), which suggests a bullish trend for upcoming months. In contrast, the higher-than-current-price 5-day SMA shows short-term weakness, so $SOL might briefly consolidate after today’s (March 6) spike.
Several MAs are clustered in the $146-$149 zone, creating important support and resistance levels. A break below or above these price points will determine $SOL’s momentum.
Investors should particularly watch for support at the EMA20 ($146.889) if consolidation occurs, as this level could serve as a springboard for the next leg up.
On top of this, $SOL has successfully escaped the ‘death cross’ formation, a serious bearish indicator that occurs when the 50-day SMA drops below the 200-day SMA. This bullish reversal and increasing trading volumes indicate a positive sentiment among $SOL investors.
Looking at momentum indicators like the Relative Strength Index (RSI) and Stochastic Oscillators, we notice $SOL shows a moderate positive trend that may continue to build up over the week.
Lastly, the Williams %R at -29.202 shows $SOL is trading in the upper 30% of its recent range without reaching overbought extremes yet. In a nutshell, it means buyers are in control but not euphoric, which is arguably the most sustainable position for continued upward movement.
Network Upgrades and Trump’s Policies Reinforce Technical Indicators
Technical analysis may give us reliable signals, but ecosystem developments and external factors like Trump’s new orders can change $SOL’s price course overnight.
On Monday, Trump announced $XRP, $SOL, and $ADA will join the US strategic crypto reserve alongside $ETH and $BTC. The news briefly sent $SOL from $140 to $177, a 26% spike in a matter of hours.
That’s unsurprising given that $SOL is the backbone of the largest altcoin ecosystem, particularly popular among meme coin traders (and the US president shares the degen spirit, as evident from his official token launch).
There are now 2.77M active wallet addresses on Solana – for context, Ethereum only has 413K. The network’s Total Value Locked (TVL) peaked at $11.188B on January 21, following Trump’s inauguration, before dropping to $7.07B in March.
Governmental acceptance of $SOL is likely to drive demand for the token among risk-averse investors due to perceived legitimacy. This political tailwind comes at a perfect time for Solana, as the network has finally overcome its reputation for outages with 100% uptime over the last six months.
The upcoming Solana network upgrade, which will dynamically adjust $SOL’s inflation rate based on staking participation, could further support the upward trend.
Solana’s community wants to cut inflation by 80% by reducing the supply of new tokens entering the market.
The bottom line? $SOL’s future looks bright, and X analyst Ali Martinez predicts a possible breakthrough to $213.
Is Solaxy ($SOLX) the Missing Catalyst for $SOL’s Breakout?
While Solana resolved its uptime issues, it still frequently faces network congestion. This leads to higher fees, slower processing, and, sometimes, failed transactions.
Let’s face it – no technical indicators will save $SOL from a crash if its parent network performs poorly.
A Layer-2 (L2) solution akin to Ethereum ZK-rollups could resolve Solana’s scalability limitations.
Solaxy ($SOLX) is the first-ever project that developed an L2 specifically for Solana’s architecture, which makes it an interesting new cryptocurrency to watch. It will offload bundled transactions for faster processing before returning them to the base layer for verification.
Thanks to its pioneering utility, Solaxy raised over $25M in funding, with one token now selling at $0.001654. Early investors can earn additional tokens with a 163% APY, set to decrease as the staking pool grows.
Analysts predict $SOLX to hit $0.032 by the end of the year. However, its long-term prospects are even more promising due to its integral role in the Solaxy ecosystem, so now is a prime time to buy $SOLX.
Solana Price Prediction: Bulls Target $213
The technical outlook for $SOL is strongly bullish despite recent volatility. With SOL successfully escaping the death cross formation and finding support above key moving averages, the stage is set for a potential rally toward the $213 target. Institutional acceptance and anticipated network upgrades could act as catalysts for this bull run.
Solaxy might be the missing piece of Solana’s infrastructure that will support $SOL’s journey to new heights. Judging from the $25M presale raise, smart money is already recognizing Solaxy’s transformative potential.
However, remember that external forces also come into play. With the most unpredictable presidential administration and geopolitical situation in decades, doing your own research is more important than ever.
