Solana's Price Stalls at Resistance Zone, Alpenglow Upgrade Looms
Solana's price has been steadily increasing, reaching $121 in October after a 14.6% gain in September. The token has been trading near this level for a few days, with a 24-hour price increase of 1.6%. However, the market capitalization has decreased by 2.5% over the past seven days, indicating a slight downturn in investor interest.
The current price movement is a continuation of the two previous months, during which Solana's price rose by 41.5% in August and 14.6% in September. The price has been hovering around $120, with the immediate resistance zone sitting between $124 and $125. To break through this resistance and continue its upward trend, Solana's price needs to rise above this level.
The $148 target, mentioned by trader Daan Crypto Trades, is still a possibility, but it will require a price increase of around 22% from the current level. The Relative Strength Index (RSI) is currently at 50.70, indicating a neutral momentum, while the Moving Average Convergence Divergence (MACD) remains below zero, showing that the longer-term bearish momentum has not disappeared.
Additionally, the slowdown in institutional demand is another factor to consider. According to Farside Investors, Solana ETFs attracted only $800,000 in net inflows from September 28 to October 2, a significant decrease from the previous week's $188.1 million. This could indicate a decrease in investor confidence, making it harder for Solana's price to break through the resistance zone.
The Alpenglow upgrade, which aims to reduce finality from 12.8 seconds to 150 milliseconds, is another key development to watch during October. While the exact activation date is not confirmed, the upgrade is expected to have a positive impact on Solana's performance and could contribute to its upward trend.
The institutional tokenization efforts, including Project Harmonia, which connects Allfunds' fund distribution network with tokenized funds on Solana, could also have a positive impact on Solana's price. However, the current initiatives do not guarantee demand for $SOL, and the outcome is uncertain.