Solana (SOL) is preparing for an important network upgrade: Will the bounce back follow?

Solana (SOL) is currently stabilizing around the 200 USD mark at the beginning of the week, after experiencing a nearly 3% fall last week. However, the market is beginning to stir with optimism thanks to an important upgrade that is set to take place on the network. According to reports, the Alpenglow (SIMD-0326) consensus proposal is almost certain to be approved on Tuesday, promising to shorten the block completion time from 12.8 seconds to just 50 milliseconds — a groundbreaking advancement. In parallel, derivative data also shows that the funding rate is maintaining a positive level, suggesting that SOL may soon enter a bounce back in the coming days.

Solana aims to bounce back thanks to the new consensus upgrade

According to data from Wu Blockchain released on Monday, Solana's new consensus proposal – Alpenglow (SIMD-0326) – has been marked as "passed," with the voting phase taking place from Epoch 840 to 842 and is expected to conclude around Tuesday.

The chart shows that there are currently 36.91% of votes in support, while 62.6% of the votes are still undecided. However, strong backing from the community raises great hopes that this proposal will be approved.

If approved, Alpenglow will shorten the block completion time from 12.8 seconds to just 50 milliseconds – a breakthrough in performance that could bring Solana closer to the top position among blockchains in processing speed.

Alongside the optimism from the upgrade, market indicators also show positive signals. The funding rate of Solana remains positive, reaching 0.0071% on Monday, reflecting that the bulls (long) are willing to pay fees to the bears (short) – a testament to the prevailing optimistic sentiment.

Funding rate chart of Solana | Source: Coinglass## Solana price forecast: SOL faces resistance at a key area

The price of Solana (SOL) was blocked at the upper trend line of the parallel channel – formed from a series of peaks and troughs since mid-April – during last Friday's session, resulting in a fall of 6.38% as of Sunday. By Monday afternoon, SOL is temporarily stabilizing around the 200 USD level.

If buying power returns and the price breaks out above the upper boundary of the price channel, the upward momentum may extend towards the important resistance area of 230 USD. A solid candle close above this level will pave the way for SOL to approach the record high of 295.83 USD established on January 19.

Daily chart of SOL/USDT | Source: TradingViewTechnical signals are supporting the bulls: the daily RSI index is maintaining at 54, above the neutral threshold of 50, indicating that there is still room for growth. At the same time, MACD has just recorded a bullish cross( and this signal is still in effect, further strengthening the positive outlook.

However, the negative scenario still exists. If SOL continues to face selling pressure, the price may retreat to test the support zone during the day at 184.13 USD.

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