Solana Price Surges 20% as Coinbase Launches $230M cbBTC Token

Solana Price Crosses $150 amid Coinbase Announcement

Solana price broke through the $153 barrier on Sept 25, gaining 21% in the past week. This rally coincides with Coinbase’s announcing plans to launch its cbBTC token on the Solana blockchain. Key technical indicators suggest the price could see further upward movement in the coming days.

Coinbase to Launch cbBTC on Solana, Expanding Wrapped Bitcoin’s Reach

At Solana Breakpoint 2024, Hassan Ahmed, Coinbase’s Singapore Country Director, confirmed plans to launch the cbBTC token on Solana.

While no specific launch date was provided, Ahmed cited strong user demand for Solana as a catalyst for the move. cbBTC, Coinbase’s wrapped Bitcoin, was launched earlier this month on Ethereum and Base, where it is backed 1:1 by Bitcoin held by Coinbase.

cbBTC is designed to provide liquidity for DeFi protocols and serve as collateral in Ethereum and Base ecosystems. Less than a month post-launch, cbBTC’s market cap has continued to rise, crossing $212 million mark at the time of writing on Sept 25, according to CoinMarketCap.

Institutional Momentum Behind Solana’s Network Diversification

During the panel, Ahmed praised Jump Crypto’s efforts with the Firedancer validator client, calling it a key driver of Solana’s network decentralization.

Jump Crypto’s chief science officer, Kevin Bowers, revealed that Firedancer’s prototype, Frankendancer, had launched on Solana’s mainnet, with the testnet version operational as well. These developments are seen as critical steps toward enhancing Solana’s efficiency and decentralization.

As Solana continues to grow, institutional support and network upgrades like Firedancer are likely to play a pivotal role in its long-term scalability and adoption.

Solana Price Forecast: Can SOL Rally Hit $200?

Solana (SOL) surged past the $153 resistance level on September 25, gaining over 21% in a week, driven by Coinbase’s cbBTC announcement. Based on technical indicators, a bullish trend is emerging, but several key levels must be broken for the rally to extend toward $200.

The Bollinger Bands, which measure volatility and identify overbought or oversold conditions, show SOL nearing the upper band at $153.91. A successful breach of this upper band resistance could pave the way for the next psychological barrier around $160.

If bullish momentum persists, the next critical resistance zone sits at $180, with the final obstacle near $200. On the downside, support is seen at $139 and $124.14, which aligns with the middle and lower Bollinger Bands, respectively. A failure to hold $139 could signal weakness.

The MACD (Moving Average Convergence Divergence), an indicator of trend direction and strength, is currently in positive territory. The MACD line (2.70) crossed above the signal line (2.05), signaling ongoing bullish momentum. As long as the histogram remains green and expanding, further upward movement is likely.

However, caution is warranted if the rally stalls near $160, as consolidation or retracement could follow. A close above $180 is crucial to confirming the rally’s potential to target $200.