Solana outperforms large-cap cryptocurrencies on positive regulatory developments and ETF inflows

<p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 102%; font-size: 15px;">FUNDAMENTAL OVERVIEW</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Solana was among the biggest large-cap movers recently, gaining roughly 10–13% around Friday's rally. The catalyst was the broader regulatory relief from the SEC's tokenization framework and <a href="https://crypto.news/cftc-submits-crypto-market-framework-for-white-house-review/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">CFTC rulemaking</a>. The CFTC has effectively signalled that it intends to move forward with a crypto market framework using its existing authority rather than waiting for Congress. But Solana also had its own fundamental tailwinds. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">One interesting development is that tokenized-equity participation on Solana reached a record 850,000 unique holders, while Solana spot ETFs recorded another week of inflows, extending a 12-week streak.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">IDIOSYNCRATIC CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Looking ahead, the most important idiosyncratic catalyst is the Solana's Alpenglow consensus upgrade which is designed to significantly improve Solana's finality and network performance. Current event calendars put the Alpenglow activation around September 28. Successful implementation could strengthen the argument that Solana can support increasingly demanding financial applications. The rollout is occurring in phases and it’s one of the largest protocol upgrades in Solana’s history. </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">SYSTEMATIC CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">On the macro side, the market’s focus is now on tomorrow’s UN General Assembly, as Trump called a meeting with Gulf leaders on the sidelines to discuss the next steps in the war with Iran. The Iranian delegation was also allowed to participate in the Assembly, so there will likely be a meeting between Trump and Iranian President Pezeshkian.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Keep in mind that a de-escalation would send oil prices lower, further easing inflation and rate hike concerns and ultimately support risk sentiment and cryptocurrencies.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Economic data will also be important given the current market’s pricing. When positioning and market expectations become stretched, even a modest shift in the data can trigger a significant reversal. If US data starts surprising to the downside, expectations for aggressive rate hikes will likely be reduced, giving Solana an additional boost.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 102%; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/SOLUSD/" rel="follow">Solana</a>bounced on the key support zone around the 97.00 level and eventually extended the rally into new highs. We now have another major trendline defining the bullish momentum. If we get a pullback, we can expect the buyers to lean on the trendline with a defined risk below it to keep pushing into the 149.00 level. The sellers, on the other hand, will look for a break lower to extend the pullback into the 97.00 support.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 102%; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 4 hour chart, we can see the price broke above the upper bound of the bullish flag and bullish momentum increase as more buyers piled in to target new highs. The first target should be around the 120.00 where we have the 127.2% Fibonacci extension level. If we get pullback before that, we can expect the buyers to step in around 108.00 swing low with a defined risk below it to keep pushing into new highs. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the daily trendline.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">On the 1 hour chart, we have a minor upward trendline defining the bullish momentum on this timeframe. If we get a pullback into the trendline, we can expect the buyers to lean on it with a defined risk below it to keep pushing into new highs, while the sellers will look for a break to extend the pullback into the 108.00 swing low. </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;"> </p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow">Tomorrow</a>, we have Trump meeting with Gulf leaders and potentially with Iran’s President at the UN General Assembly. On Wednesday, we get the Flash US PMIs. On Thursday, we have the Trump-Xi meeting.</p> This article was written by Giuseppe Dellamotta at investinglive.com.