Solana (SOL) Price Update: Modest 3% Gains After 6% Drop the Previous Day

The cryptocurrency is currently trading around $165-$170 as market participants digest several developments affecting its price action and technology foundation.

Solana's price saw modest gains of 3% in recent trading, following a 6% decline the previous day. The altcoin is currently trading around $165-$170 as market participants digest several developments affecting its price action and technology foundation.

This had led to consolidation within a key range between $160 and $180. This range previously held as support before bulls pushed prices to highs near $260.

Anza Unveils Alpenglow

On May 19, Solana-focused research firm Anza introduced Alpenglow, described as the largest protocol consensus change for the network. This upgrade shifts from the Tower BFT and Proof of History consensus protocol to Votor and Rotor.

The technical improvement is designed to enhance network performance. According to Anza, Votor finalizes blocks in a single round of voting if 80% stake is participating, and it finalizes in two rounds of voting if 60% of stake is responsive.

Rotor, the other component of the upgrade, is flattening the turbine tree to reduce network latency with higher fanout, fewer layers, lower latency.

This protocol upgrade comes as Solana experiences growth in its ecosystem. The total value locked in protocols on the network has increased from $7 billion in April to over $10 billion currently.

Moreover, institutional interest in Solana continues to develop. Galaxy Digital recently partnered to launch tokenized equities on the Solana blockchain, potentially bringing traditional finance assets to the network.

The market is also watching for developments regarding Solana spot ETFs. The U.S. Securities and Exchange Commission has delayed decisions on multiple Solana spot ETF applications, but this hasn’t diminished overall interest.

Adding to the positive regulatory environment, the U.S. Senate passed a key vote advancing the 'Genius Act,' legislation aimed at regulating stablecoins. Experts believe the bill now has a high chance of becoming law.

Chart analysts have also identified a falling wedge pattern on Solana's 4-hour chart, which some interpret as a bullish signal that could lead to a short-term bounce.

However, traders are keeping an eye on resistance levels. The $180-$190 zone has served as a ceiling in previous price action, recently halting SOL’s upward momentum.

Meanwhile, large transfers from Binance wallets have raised some questions in the market. Millions of dollars worth of SOL have reportedly been moved from Binance to external destinations, including Wintermute and exchange deposit wallets.

Despite these transfers, buyers appear to be holding support levels, maintaining Solana's position within its established range.

Bitcoin's resilience above $100,000 and predictions of potential runs to $150,000-$200,000 in 2025 provide a bullish backdrop for altcoins like Solana.

The latest trading data shows Solana at $165.80, down 2.33% over 24 hours, as it continues to navigate current market conditions.