Investors’ Outlook on Solana (SOL) for October’s Market Trends

The price of Solana (SOL) has found it challenging to surpass the $160 level for the last two months, consistently lacking the necessary momentum. Nevertheless, there is a prevailing sentiment in the market that “Uptober” may herald a turnaround.

This anticipated bullish trend could see SOL climbing by 20%, potentially bringing it nearer to the $200 threshold, which is a significant psychological barrier.

Solana Has a Rally to Look Forward To

Numerous factors influence Solana’s price; however, broader market conditions are the most impactful. In a discussion with BeInCrypto, Bill Qian, Chairman of Cypher Capital, addressed the pressing issue of liquidity.

“Solana has remained in a consolidation range between $186 and $120, mostly due to a lack of liquidity across the entire cryptocurrency market. Although the Federal Reserve’s expected rate cuts could enhance liquidity in October, this alone may not suffice to push Solana out of its current range. A more powerful catalyst would be the emergence of an altcoin season, whereby speculative funds and attention redirect from other chains to the Solana ecosystem. An inflow of capital and interest from other Layer 1 chains into Solana’s thriving DeFi, NFT, and gaming sectors could significantly bolster the chances of breaking free from this consolidation phase,” said Qian to BeInCrypto.

Matt Mena, a Crypto Research Strategist at 21.co, elaborated on the potential for a rally linked to advancements within the Solana chain and macroeconomic indicators during an interview with BeInCrypto.

“Before the Japanese Yen Unwind Trade and other negative macro influences affected the market, Solana was positioned to retest the $200 level. However, with the Federal Reserve anticipated to continue decreasing interest rates, including two more cuts expected before year-end, this renewed risk-on sentiment might inject liquidity back into the market, making conditions more favorable for risk assets such as Solana.

Additionally, the recent launch of the Frankendancer client on the mainnet and the projected 2025 introduction of Firedancer, which achieved over 1,000,000 tps on testnet, signify important technical progress that strengthens Solana’s reputation as a top-tier high-performance Layer 1 blockchain. Firedancer is anticipated to enhance Solana’s throughput and improve the diversity of network validators, greatly augmenting its defense against attacks and bugs. These enhancements could rekindle investor interest and position Solana as a strong candidate for a breakout, making a retest of the $200 mark increasingly feasible,” stated Mena in his conversation with BeInCrypto.

Moreover, macro trends for Solana are appearing more favorable. The Moving Average Convergence Divergence (MACD) indicator indicates that bullish momentum has been accumulating since late September. This trend is projected to continue for 42 days, offering SOL ample opportunity to rise significantly in October.

Historically, when this type of bullish momentum emerges, Solana tends to experience sustained upward movements. If this trend holds true, SOL might reach $186 by the end of October, presenting a robust recovery chance for investors.

Read more: Solana vs. Ethereum: An Ultimate Comparison

SOL Price Prediction: For the Better or for the Worse?

At present, Solana is trading at $155 and is testing this level as support. The crucial barrier remains at $160, a resistance that has proven resilient for the last two months. Should Solana succeed in closing above $160, it would mark a significant milestone, suggesting a potential bullish breakout.

If this breakout transpires, Solana could surge towards $186, a level previously tested in August. Surpassing this resistance might catalyze a rise to $200, an essential milestone for SOL. This would signify a 20% gain, in line with the overall positive sentiment towards the token in October.

Read more: Solana (SOL) Price Prediction 2024/2025/2030

Conversely, failing to surpass the $160 resistance could trigger a significant pullback. In that case, Solana may decline to $138, retesting this lower support level and invalidating the bullish perspective for the token.