Solana Price Forecast: SOL price stabilizes as new consensus proposal Alpenglow is likely to pass

Solana (SOL) price is stabilizing around $200 at the time of writing on Monday, extending last week’s nearly 3% decline, but optimism is building around a key network upgrade. Reports indicate that the Alpenglow (SIMD-0326) consensus proposal is likely to pass on Tuesday, aiming to reduce block finality from 12.8 seconds to just 50 milliseconds. Meanwhile, the derivatives data showing positive funding rates suggest that SOL could be positioned for a recovery in the upcoming days.

Solana eyes recovery as new consensus upgrade boosts network

According to Wu Blockchain data on Monday, Solana’s new consensus proposal, Alpenglow (SIMD-0326), is currently marked as passed, with the voting period running from Epochs 840 to 842 and expected to conclude around Tuesday.

The graph below shows that currently 36.91% have voted yes, while 62.6% of votes remain uncast and strong community support suggests it will hold.

If passed on Tuesday, the Alpenglow consensus protocol could reduce block finality from 12.8 seconds to just 50 milliseconds, signaling a major leap in efficiency for the blockchain.

Apart from the optimism building around the network upgrade, Solana’s funding rate remains positive, at 0.0071% on Monday, indicating that longs are paying shorts and highlighting the ongoing bullish sentiment. 

Solana funding rate chart. Source: Coinglass

Solana Price Forecast: SOL faces rejection from the key zone 

Solana price got rejected from the upper trendline of a parallel channel (drawn by joining multiple highs and lows since mid-April) on Friday and declined 6.38% until Sunday. At the time of writing on Monday, it stabilizes at around $200.

If SOL recovers and breaks above the upper trendline boundary, it could extend the rally toward its next daily resistance at $230. A successful close above this level could extend the gains toward its record high of $295.83, set on January 19.

The Relative Strength Index (RSI) on the daily chart reads 54, which is above its neutral level of 50, indicating that bulls still have room for upward momentum. The Moving Average Convergence Divergence (MACD) has displayed a bullish crossover that remains in effect, further reinforcing the bullish outlook.

SOL/USDT daily chart 

However, if SOL continues its correction, it could extend the decline to retest its next daily support at $184.13.