Solana (SOL) is on the brink of a significant breakthrough as it eyes a move past the $240 mark, having already reached a seven-month high. This surge has the crypto community buzzing with anticipation, yet seasoned analysts are urging caution amidst the excitement.
Solana’s Ascent to New Heights
On Friday, Solana hit a noteworthy milestone of $241.84, marking its highest point in seven months. The cryptocurrency has been stuck in a $120-$220 range since February, struggling to break free until recently. This week, SOL managed to surpass several key barriers, leading many to speculate that it’s nearing its final resistance. Analyst Crypto Jelle noted that Solana has been climbing quietly, gaining 20% since Sunday, and now faces a crucial test at the $240 level, which it hopes to establish as new support.
The analyst predicts that if Solana can overcome this resistance and secure the $250 level as support, the sky could indeed be the limit. This area has served as a macro resistance for the altcoin over the past two years. Turning it into support could potentially set the stage for a meteoric rise to $600. Another analyst, Ali Martinez, suggests that after breaking out of a three-year cup and handle pattern, Solana’s ultimate target could be around $1,314.41.
Caution Amidst Optimism
However, despite the rally, not everyone is convinced that it’s smooth sailing ahead. Altcoin Sherpa, another respected voice in the crypto sphere, has issued a cautionary note to investors, advising them against making large-scale investments at this time. “Now is NOT the time to ape in gigantic,” he warned on social media platform X. While he remains bullish on Solana, Ethereum, and BNB in the long term, he believes the bulk of the current move is already over, and the market rally may be closer to its end than its beginning.
Sherpa expressed that while he’s optimistic about the future, especially given the involvement of traditional finance investors, the absence of big buyers like Michael Saylor could affect the market’s momentum. The analyst emphasized that although he expects continued strong performance in the coming months, investors should stay vigilant and not get swept up in the hype.
The Prospect of a “Solana Season”
Adding a bullish twist to the narrative, Bitwise’s Chief Investment Officer, Matt Hougan, has forecasted a promising Q4 rally for Solana. He believes the cryptocurrency possesses all the right elements for an explosive end-of-year run. Hougan speculates that a “Solana Season” could be on the horizon, driven by potential approval of exchange-traded funds (ETFs) and robust corporate treasury purchases.
Several spot Solana ETFs are currently awaiting approval from the US Securities and Exchange Commission (SEC), following a delay in the decision last month. Investors and issuers are hopeful for a favorable verdict in October, which could significantly boost Solana’s market momentum. Additionally, forward Industries Inc., a newly launched Solana Treasury company, recently announced the successful closure of its private investment in public equity (PIPE) financing, raising approximately $1.65 billion. The company plans to use the proceeds primarily to purchase SOL, further fueling the cryptocurrency’s growth trajectory.
Looking Ahead
As Solana hovers around $239.86, up 6.1% on the daily timeframe, the crypto community is torn between excitement and caution. While some analysts predict a thrilling upward trajectory, others urge investors to tread carefully.
The potential approval of Solana ETFs and substantial corporate purchases could indeed ignite a “Solana Season,” but as always in the volatile world of cryptocurrencies, nothing is set in stone. Investors must balance their enthusiasm with prudence, keeping an eye on market developments and expert opinions as Solana continues its journey towards price discovery.
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.
