Solana price continued its recent recovery, hitting its highest level since November 13th. It has jumped by 25%, and key fundamentals, including the upcoming Alpenglow upgrade and ETF inflows, points to more gains in the coming weeks or months.
Solana Price to Benefit From the Upcoming Alpenglow Upgrade
SOL price has done well in the past few weeks, and this trend could continue in the coming months as investors focus on the upcoming Alpenglow upgrade.
Alpenglow will be the most important protocol overhaul since it was founded a few years ago. The most important part of this upgrade will be that it will replace the Proof-of-History and TowerBFT systems.
As a result, the network will see the finality falling from 12.8 seconds to between 100 and 150 milliseconds, making it one of the fastest chains in the crypto industry.
These speeds will be achieved by the Votor and Rotor mechanisms. Votor will be a faster mechanism that can finalize transactions in one round, while Rotor will replace Proof-of-History with a better model.
This upgrade will come at a time when the network is going through substantial growth in the past few months. Data shows that the network has handled over 977 million transactions this month. It handled 1.8 billion transactions in December, much higher than the other ten networks combined.
Solana Transaction & Active AddressesSolana is also one of the most used networks in the crypto industry, with over 67 million active addresses soaring to over 67 million in December. At the same time, it generated the most fees in the crypto industry in December as it made over $18 million.
Therefore, the Alpenglow upgrade will likely supercharge its growth momentum this year. In most cases, cryptocurrencies normally do well after having a major network upgrade.
Meanwhile, data shows that spot Solana ETFs are experiencing substantial inflows this year. They have added over $90 million this month, bringing the cumulative total to $857 million.
SOL Price Technical Analysis Points to More Upside
The daily timeframe chart shows that the SOL price has rebounded in the past few weeks, soaring from $116 to the current $144. It is nearing the important psychological level at $150 as the momentum continues.
A closer look shows that the coin has formed a small cup-and-handle pattern, a common bullish continuation pattern in technical analysis. It has also flipped the 50-day Exponential Moving Average (EMA) into a support.
Solana Price ChartTherefore, the most likely long-term SOL price prediction is bullish, with the next key target being at $200. This price is an important psychological level and also the ultimate resistance of the Murrey Math Lines tool.
The bullish outlook will become invalid if it drops below the strong, pivot, reverse level of the Murrey Math Lines.
Source: https://coingape.com/markets/solana-price-outlook-ahead-of-the-alpenglow-upgrade/
