Solana Price Surge: What’s Driving the Recent Spike?

Solana Price Surge: What’s Driving the Recent Spike?

Solana price has recently seen a significant boost, surpassing $170 for the first time since early August, fueling optimism among investors. As the end of “Uptober” approaches, traders are speculating how much further SOL can climb in the coming days.

Why is Solana Price Rising Today?

As of October 21, Solana is trading around $170.17, after reaching a two-month high of $171.76. This marks a 7.1% increase in the past 24 hours, largely following Bitcoin’s surge to $69,400 over the weekend.

The uptick in Solana price is partly driven by Bitcoin’s rally on October 20, when it crossed the $69,000 mark for the first time in 2.5 months. This sharp rise in Bitcoin pushed the broader cryptocurrency market into positive territory, giving assets like SOL a boost.

Following the surge in buying pressure, Bitcoin hit a high of $69,519 before pulling back as traders rushed to secure profits. In the wake of this, Solana rebounded to levels not seen since August 1, 2024.

Will Solana Continue to Rise in October?

Data from Coinglass shows that traders are actively buying Solana, with both price changes and Open Interest (OI) trending upwards. This combination of positive metrics typically indicates that traders are going long on an asset, suggesting strong confidence in Solana’s continued rise.

Additionally, the funding rate for Solana has been climbing since October 18. An increasing funding rate, paired with rising prices, usually signals robust bullish sentiment in the market, suggesting that derivative traders are largely behind the recent surge in SOL’s price.

These indicators reveal that the prevailing mood among traders is bullish, with many expecting Solana’s price to rise further in the near future.

SOL Price Forecast: How High Could It Go?

Solana price has recently completed an inverse head-and-shoulders pattern, a classic bullish reversal signal. The breakout above the $160 neckline confirms this upward trend.

Currently trading at $170.58, the breakout target based on the height of the pattern points to a potential move toward $190, representing a 16.41% gain from current levels.

Historically, Solana price may encounter resistance near $190 and $230. However, should it manage to break through these levels, the price could surge to $250, reflecting a 46% increase from today’s price.

On the downside, strong support is seen around the $160 neckline, with a potential retest of this level offering a buying opportunity for traders. Should Solana fail to hold above $160, the price could dip towards lower support levels at $140 and $130.

In the short term, Solana price is expected to move towards the $190-$195 range, which would serve as a key take-profit zone for traders. In the longer term, if SOL breaks the $190 resistance with solid momentum, it could extend its rally toward $230 or even $250.