Solana's price targets a potential $250, yet crucial support is pivotal for Q4 growth
Solana [SOL], the popular cryptocurrency, has seen a significant surge in September, rallying nearly 16% and bringing its Q3 returns to over 50%. This impressive performance has caught the attention of investors and industry experts alike.
One key indicator that has been attracting attention is the Spent Output Profit Ratio (SOPR), which measures the ratio of the spend amount of outputs in profit to the spend amount of all outputs. Higher SOPR readings indicate elevated unrealized profits for Solana holders. However, it's important to note that this article does not discuss the sell-off risk and price cool-off that such elevated unrealized profits could potentially bring.
Despite the selling pressure, which has averaged $1 billion per day in mid-September, the previous resistance of $220 is now being defended as support for Solana [SOL]. This shift in dynamic is significant, as it suggests a potential change in market sentiment.
The bullish sentiment for Solana in the mid-term is further bolstered by the increasing corporate treasury holdings. Lookonchain reports that treasury firms now hold over 15 million SOL, potentially boosting demand for Solana. This trend could lead to a continued uptrend for Solana [SOL] into Q4.
Moreover, the anticipated approval of Exchange-Traded Funds (ETFs) could lift Solana higher. Matt Hougan, CIO of Bitwise, has suggested as much, stating that the upcoming ETF approval could have a positive impact on Solana's price.
In addition to ETF staking, the growing corporate treasury demand could lead to higher repricing for Solana in Q4. The $220 support level remains crucial for bulls in the mid-term, as it could serve as a springboard for further price increases.
Interestingly, Alpine Select has held Solana in its portfolio via dedicated venture capital funds managing digital assets exposure. Canary Capital has also applied for a spot crypto ETF focusing on US tokens, including Solana [SOL]. These developments underscore the growing institutional interest in Solana.
Solana [SOL] rose from $144 to nearly $250 before a price rejection. While this rejection is significant, it doesn't necessarily indicate a bearish trend. Instead, it could be seen as a temporary correction in an otherwise bullish market.
In conclusion, Solana's strong performance in Q3, coupled with the increasing corporate treasury holdings and ETF expectations, paint a bullish picture for the cryptocurrency in the mid-term. The $220 support level will be crucial to watch in the coming weeks.
Read also:
- EPA Administrator Zeldin travels to Iowa, reveals fresh EPA DEF guidelines, attends State Fair, commemorates One Big Beautiful Bill
- Musk announces intention to sue Apple for overlooking X and Grok in the top app listings
- Cybertruck's Disappointing Setback, Musk's New Policy, Mega-Pack Triumphs, Model Y's Anticipated Upgrade Prior to Refresh (Week of January 25 for Tesla)
- Innovative Company ILiAD Technologies Introduces ILiAD+: Boosting Direct Lithium Extraction Technology's Efficiency Substantially
