Solana Rebounds Strongly After August Dip
Solana has staged an impressive comeback after falling to $155 in early August. The cryptocurrency surged more than 36% to reach an intraday high of $210, reigniting bullish sentiment among traders. This recovery has set the stage for technical patterns pointing to much higher price targets.
Analysts now suggest that if Solana can decisively clear the resistance between $210 and $250, it could unlock a rally that brings the token closer to $1,000. Market watchers believe the momentum is firmly in the hands of the bulls.
Bullish Patterns Point to Four-Digit Targets
On the weekly chart, Solana has formed a bullish megaphone pattern, also known as a broadening wedge. Such setups often signal the potential for strong upward moves once the upper boundary is breached. For Solana, this breakout point sits around $330.
If the megaphone pattern completes, the measured target stands at approximately $1,057—a potential 400% gain from current levels. The relative strength index (RSI) has also risen steadily, further supporting the case for continued bullish momentum.
Cup-and-Handle Breakout Adds Fuel
Solana’s charts have also displayed a cup-and-handle formation on the weekly timeframe. The breakout above the handle at $160 confirms bullish continuation. Prices remain comfortably above this level, maintaining the validity of the breakout.
The next target for bulls is the neckline resistance at $250. A successful break above this threshold could pave the way toward $1,030, according to Fibonacci retracement analysis, adding another layer of confidence to the $1K target.
Analysts Reinforce the $1,000 Goal
Crypto analyst Gally Sama emphasized that Solana is in a multimonth bullish setup, often a precursor to powerful price movements. His analysis suggests that $1,000 remains the target once SOL decisively breaks above its current range.
Market observers also note that a push above $210 would increase the likelihood of a rally first toward $260 and eventually into price discovery territory, where Solana could set fresh all-time highs.
Recommended Article: Solana’s Growing Institutional Demand: DeFi Development Buys $77M SOL
Open Interest Surges to Record Levels
Solana’s open interest in futures markets has reached a record-breaking $13.68 billion, highlighting strong speculative demand. Such elevated levels of open interest typically precede major price swings, adding weight to bullish predictions.
Historically, surges in open interest have coincided with sharp price gains. Between April and July, for instance, a 188% rise in open interest was followed by a 103% rally in SOL’s price, underscoring the potential impact of this latest milestone.
Alpenglow Upgrade Boosts Confidence
The recently approved Alpenglow upgrade has further boosted investor sentiment. Backed by more than 98% of the community, the upgrade reduces transaction finality from 12.8 seconds to just 150 milliseconds and increases throughput to 107,540 transactions per second.
This technological leap strengthens Solana’s competitive edge against Ethereum, potentially positioning it as the leading blockchain for high-speed decentralized finance and applications as adoption grows.
On-Chain Weakness Raises Questions
Despite bullish technicals and futures activity, Solana’s on-chain metrics have shown signs of weakness. Over the past month, the network’s transaction count plummeted by 99%, and active addresses fell by 22%. These figures suggest declining real-world usage.
At the same time, decentralized exchange activity has dropped for the third week in a row. Weekly DEX volumes fell 65% to $10.6 billion, indicating that speculative enthusiasm may not be fully matched by user engagement on the network.
Can Solana Overcome Mixed Signals?
Solana’s rally is powered by bullish technical setups, record futures open interest, and the successful Alpenglow upgrade. Together, these factors create the potential for a run toward the much-anticipated $1,000 mark.
However, declining on-chain activity and lower DeFi engagement raise important questions about sustainability. Whether Solana can balance speculative enthusiasm with real adoption will determine if the $1K target becomes reality or remains an elusive goal.
