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SOL Price Prediction: Assessing Investment Potential Amid Technical Correction and Network Evolution

SOL Price Prediction: Assessing Investment Potential Amid Technical Correction and Network Evolution

Author:
SOL News
Published:
2025-09-29 18:46:31
20
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[TRADE_PLUGIN]SOLUSDT,SOLUSDT[/TRADE_PLUGIN]

#SOL

  • SOL is trading below its 20-day moving average at $210.17, indicating short-term bearish pressure
  • Network upgrades including Firedancer and Alpenglow aim to significantly improve scalability and performance
  • Mixed sentiment with positive institutional interest through ETF filings offset by declining token launch activity

SOL Price Prediction

Technical Analysis: SOL Shows Mixed Signals Amid Current Correction

According to BTCC financial analyst John, SOL is currently trading at $210.17, below its 20-day moving average of $226.13, indicating short-term bearish pressure. The MACD reading of 9.0092 suggests some bullish momentum remains, though the price sits near the lower Bollinger Band at $194.17, which may act as support. John notes that a break below this level could signal further downside toward $180, while reclaiming the 20-day MA WOULD be necessary for a bullish reversal.

SOLUSDT

Market Sentiment: Network Upgrades Counter Short-Term Concerns

BTCC financial analyst John observes that recent news presents a mixed picture for SOL. Positive developments like the Firedancer proposal to remove block limits and the Alpenglow upgrade enhancing scalability could drive long-term value. However, John cautions that declining token launches and recent price weakness reflect near-term headwinds. The ETF filings and institutional interest provide fundamental support, but investors should monitor whether technical improvements translate into renewed developer and user adoption.

Factors Influencing SOL's Price

Firedancer Proposal Aims to Unlock Solana's Throughput Potential with Bigger Blocks

Jump Crypto's Firedancer team has submitted SIMD-0370, a proposal to remove Solana's block-level compute unit limit following the Alpenglow upgrade. This technical shift could redefine the network's scaling trajectory by allowing validators to process larger blocks dynamically.

The current 60 million compute-unit cap acts as a safeguard against validator overload. While some developers advocated increasing this to 100 million earlier this year, Firedancer's approach would eliminate the constraint entirely. Block producers could then maximize throughput based on their hardware capabilities.

Proponents argue this flexibility would bolster Solana's resilience during demand surges like token launches or DeFi activity spikes. The change could reduce congestion-related failures that have plagued the network during peak periods. Critics counter that current blocks rarely reach capacity, questioning the immediate user impact.

Solana (SOL) Price Plunges as Token Launches Hit 11-Month Low—Is the Hype Cycle Over?

Solana (SOL) has been a standout performer in the altcoin market this year, but the past week has seen its price tumble, unsettling investors across the board. The decline coincides with a sharp drop in new token launches on the Solana network, now at their lowest since October 2024. This slowdown in ecosystem activity raises questions about whether Solana is entering a prolonged cooling-off period or merely experiencing a temporary setback before its next rally.

The price slump appears driven by multiple factors. A notable reduction in token launches suggests waning speculative interest, which typically fuels demand for SOL as gas and collateral. Meanwhile, leveraged long positions face mounting liquidations, exacerbating downward pressure. The combination of cooling network activity and derivatives market turmoil paints a cautious picture for Solana in the near term.

Sharps Technology Expands Solana Strategy with Crypto.com

Sharps Technology, Inc. (STSS) is deepening its commitment to the Solana ecosystem through a strategic partnership with Crypto.com. The collaboration will leverage Crypto.com's institutional-grade platform for secure custody and OTC trading of STSS's substantial Solana holdings, currently valued at over $400 million.

The move signals growing institutional confidence in Solana's infrastructure. STSS plans to deploy capital into Solana-based projects, aiming to boost network liquidity while generating returns. "This partnership reflects our vision for bridging traditional finance with blockchain ecosystems," said James Zhang, Strategic Advisor to STSS.

Crypto.com's President Eric Anziani emphasized the importance of robust tools for institutional digital asset management. The deal underscores Solana's increasing appeal to corporate treasuries seeking exposure to high-performance blockchain networks.

AIXA Miner Enables Solana (SOL) Investors to Generate Passive Income Through Cloud Mining

Solana's blockchain has solidified its position as a leading platform for DeFi and decentralized applications in 2025, but the latest development capturing attention is AIXA Miner's cloud mining solution. The platform now allows SOL holders to convert their holdings into a passive income stream, bypassing traditional methods like staking or trading.

AIXA Miner's fixed-income cloud mining contracts promise daily returns of 2% to 9%, with top-tier users reportedly earning up to $8,000 daily. The model eliminates hardware costs and energy concerns, offering full capital refunds upon contract expiration—effectively rendering all daily yields as pure profit.

Solana Price Prediction and Rising Altcoin Demand

Solana's resurgence is drawing investor attention as trading volumes surge and large positions accumulate ahead of potential ETF approvals. On-chain data reveals a 40% spike in network activity, signaling renewed adoption. Technical charts show resistance at $215, with a breakout potentially propelling SOL toward $240 by early October. Long-term projections suggest $400–$600 if institutional inflows accelerate.

Meanwhile, Remittix, a PayFi disruptor, is gaining traction as the next breakout candidate. Its DeFi protocol has entered trending lists, with early adopters anticipating parabolic gains. Whale activity underscores the momentum—one investor reports a 24% profit after entering at $165.

Solana's Alpenglow Upgrade Ushers in New Era of Scalability with Sub-Second Finality

Solana's upcoming Alpenglow upgrade represents a quantum leap in blockchain performance, slashing block finality to 150 milliseconds through its new Votor and Rotor consensus mechanisms. The December testnet deployment will showcase 10x responsiveness gains over legacy systems while introducing skip-vote logic for validator flexibility.

This architectural overhaul paves the way for SIMD-0370's radical proposal - eliminating fixed compute limits to enable dynamic throughput scaling. Validators gain unprecedented control, able to bypass oversized blocks without mandatory hardware upgrades, fundamentally reshaping Solana's capacity planning.

The convergence of Alpenglow's consensus redesign with Firedancer's performance enhancements positions Solana for institutional-grade adoption. Market observers note the timing coincides with growing demand for high-throughput chains capable of sub-second settlement - a niche where SOL now holds technical leadership.

Solana ETF Filings Drive Price Surge Amid Institutional Interest

Solana's SOL token surged past $210 following a wave of spot ETF filings from major asset managers. Seven firms—including Franklin Templeton, Fidelity, and Grayscale—submitted amended S-1 forms with staking provisions, signaling growing institutional confidence in the cryptocurrency.

REXShares reported $16.2 million in single-day institutional inflows, while technical analysts identified $230 as a critical resistance level. A breakout could propel SOL toward $370-$400 targets. The blockchain's upcoming upgrade, which removes fixed compute unit limits, may further bolster network performance and investor appeal.

ETF Store CEO Nate Geraci anticipates regulatory approval within weeks, noting the filings' inclusion of staking mechanisms sets a positive precedent for Ethereum ETFs. Market observers view these developments as validation of Solana's position in the digital asset ecosystem.

Jump’s Firedancer Team Proposes Removing Solana Block Limits to Boost Performance

Jump Crypto’s Firedancer team has unveiled a bold proposal to eliminate Solana’s fixed block computation limits, aiming to unlock higher throughput for the blockchain. The plan, outlined in SIMD-0370, would scrap the current 60 million compute unit (CU) cap—potentially surpassing even the discussed 100 million CU alternative.

The move could create a competitive dynamic where validators invest in superior hardware to process larger blocks, capturing more transaction fees. "This would spark a flywheel effect," the proposal asserts, suggesting that infrastructure upgrades would continually push network capacity boundaries.

However, Anza’s Research Head Roger Wattenhofer cautions about centralization risks, noting that only well-capitalized validators may keep pace with escalating hardware demands. While acknowledging potential system instability from oversized blocks, he maintains these challenges are surmountable—endorsing the vision of a limit-free architecture.

Jump Crypto Proposes Removal of Solana's Block Limit to Enhance Network Performance

Jump Crypto has unveiled a proposal to eliminate Solana's fixed compute unit block limit, a move aimed at significantly boosting the network's performance. The SIMD-0370 proposal, submitted by Jump's Firedancer team, seeks to remove the current 60 million compute unit cap following the Alpenglow upgrade, which is set for testnet deployment in December.

The Alpenglow upgrade, which recently passed with near-unanimous support, reduces transaction finality from 12.8 seconds to 150 milliseconds. Under the new proposal, high-performance validators would handle larger blocks, while slower validators would skip complex ones. This creates a competitive incentive for validators to upgrade their hardware and earn higher transaction fees.

However, some engineers caution that the change could lead to centralization, as smaller validators may struggle to keep pace with the demands of larger blocks. The proposal underscores Solana's ongoing efforts to scale its infrastructure while balancing decentralization.

Firedancer Proposes Boosting Solana’s Network Efficiency

Firedancer, a high-performance validator client for Solana, has proposed eliminating the network's compute unit limit per block. Developed by Jump Crypto, this initiative aims to enhance throughput as demand for scalable blockchain solutions grows. The move aligns with preparations for Solana's Alpenglow upgrade, expected to further optimize efficiency.

The proposal suggests dynamic block scaling based on validator hardware capabilities, replacing the current 60 million CU cap. Validators with advanced infrastructure could process larger blocks, earning higher fees and incentivizing network-wide hardware upgrades. This Darwinian approach anticipates weaker validators abstaining from voting on oversized blocks, naturally raising average throughput.

Is SOL a good investment?

Based on current technical and fundamental analysis, SOL presents both opportunities and risks for investors. The cryptocurrency is experiencing a technical correction, trading below key moving averages, but maintains strong long-term fundamentals through ongoing network upgrades.

MetricCurrent ValueImplication
Price$210.17Below 20-day MA, showing weakness
20-day MA$226.13Resistance level to watch
MACD9.0092Some bullish momentum remains
Bollinger Lower Band$194.17Key support level

While short-term price action appears bearish, the fundamental outlook remains strong with Firedancer upgrades and institutional ETF interest providing potential catalysts. Investors should consider dollar-cost averaging and monitor whether SOL can hold the $194 support level.

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