Solana’s SOL has been making waves in the cryptocurrency market, as it surged 7.68% in a single day to reach $208.24, according to CoinDesk Data. This impressive leap left the CoinDesk 20 Index (CD20) and the total crypto market cap trailing in its wake, with gains of 2.89% and 1.6%, respectively. Analysts attribute Solana’s robust performance to a blend of technical momentum and burgeoning structural demand—an enticing cocktail for any investor.
A New Altcoin Cycle Darling?
Scott Melker, affectionately dubbed the “Wolf of All Streets,” is one of the analysts closely watching Solana’s movements. He believes that SOL is teetering on a critical juncture against Bitcoin. Melker suggests that a breakout at this level could position Solana as the “darling” of the next altcoin cycle. His analysis zeroes in on SOL’s current resistance against BTC, a pairing that often acts as a bellwether for a token’s potential to outshine the broader market. This sentiment echoes broader market trends, as discussed in Bitcoin, Ether ETF Flows Hint at Incoming Altcoin Bull Run.
Another voice in the Solana chorus is Lark Davis, who touts SOL as the “catch-up trade” for those who missed Ethereum’s (ETH) ascent from $1,400 in the last cycle. Davis highlights three main catalysts: the emergence of SOL-based treasury entities inspired by Bitcoin accumulation models, the looming possibility of a U.S. SEC-approved spot SOL ETF, and mounting institutional interest. These dynamics, Davis argues, could channel billions into SOL.
The Cautious Optimism of Analysts
Not all perspectives are unabashedly bullish, though. Altcoin Sherpa, a well-regarded analyst on X, urges caution. He describes SOL’s recent strength as atypical and advises traders to secure profits between $205 and $215 or to adopt a wait-and-see approach. Sherpa’s caution stems from the volatility that often follows short-lived rallies when market liquidity normalizes.
Adding another layer to Solana’s narrative is Sentora, a DeFi asset management firm. They’ve observed that over $820 million in SOL is now held in corporate treasuries, a figure reminiscent of ETH’s holdings back in April before they ballooned to nearly $20 billion. Sentora posits that if SOL’s adoption accelerates, its corporate holdings could follow a similar trajectory.
Institutional Adoption: The Next Frontier
Institutional interest in Solana is not just theoretical—it’s palpable. Earlier today, staking service provider Chorus One unveiled a new Solana validator in collaboration with Delphi Consulting, part of Delphi Digital. This move underscores a belief that institutions must contribute both capital and infrastructure to the networks they support. Chorus One’s institutional-grade validator is a testament to Solana’s burgeoning base of committed, long-term participants. This aligns with broader trends in institutional adoption, as explored in Crypto Booms as Fed Goes Dovish: Here’s What It Means for Ethereum, Solana and Dogecoin.
Technical Analysis: Support, Resistance, and Momentum
According to CoinDesk Research, between August 26 and August 27, SOL experienced a 7% gain, climbing from $191.67 to $204.62. The trading range during this period was $190.11 to $205.65, with significant volume at $193.92 establishing a robust support level. Resistance has formed near $205.65, with persistent rejections in that zone. However, sustained activity above $202.00 indicates institutional buying. In the final trading hour, SOL dipped to $202.95 before catapulting to an intraday high of $205.84 on strong volume. Key support now hovers around $202.82, while resistance is pegged at $205.84. The bullish momentum could propel SOL toward the $210.00 psychological barrier.
Looking Ahead: Will SOL Sustain its Momentum?
As Solana continues its upward trajectory, questions linger about its sustainability. Can SOL maintain its momentum? Analysts are optimistic yet cautious, recognizing the potential for both significant gains and retracements. The market will keenly watch upcoming developments, including regulatory decisions and institutional moves, to gauge Solana’s long-term prospects. What remains clear is that Solana’s journey is far from over—it’s just getting started.
Source
This article is based on: If You Missed ETH at $1,400, SOL Is the Next Big Bet: Analyst Explains His Bullishness
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
