As of May 21, 2025, the 4-hour chart of Solana (SOLUSD) on Coinbase shows the formation of a bullish flag pattern. This technical setup developed after a sharp upward move, followed by a downward-sloping consolidation range drawn in red.
A bullish flag is a continuation pattern. It forms when the price climbs quickly (flagpole), consolidates in a downward channel (the flag), and often breaks out to continue its prior uptrend.
If the breakout confirms, Solana’s price could surge by approximately 29% from the current level of $170.80. The projected target stands at $220.01, based on the height of the flagpole added to the breakout point.
At the same time, the 50-period Exponential Moving Average (EMA) is positioned at $168.54. This EMA acts as a short-term dynamic support level, and SOL is currently trading above it.
Meanwhile, the Relative Strength Index (RSI), which measures momentum, reads 54.40. This value is just above the neutral 50 mark and indicates slight bullish strength without being overbought.
Volume data also shows a decline during the flag formation. This behavior is typical in such patterns and often precedes a breakout when the volume increases again.
If Solana breaks above the flag’s upper red trendline with strong volume, it would confirm the bullish flag and open the way toward the $220.01 target.
Solana BBTrend Stays Bearish as Downward Momentum Persists
Menawhile, Solana’s BBTrend (Bollinger Band Trend) indicator stands at –4.31, showing strong bearish momentum. This is the third day in a row that the indicator remains in negative territory.
The Bollinger Band Trend measures the strength and direction of price movement in relation to the width of the Bollinger Bands. Bollinger Bands are volatility indicators that expand and contract based on price fluctuations. When the BBTrend is above zero, it often signals bullish (upward) momentum. When it stays below zero, it indicates bearish (downward) momentum.
Right now, the BBTrend for Solana is hovering around –4. This shows consistent downward pressure with no signs of volatility expanding upward. The pattern suggests that sellers still control the short-term trend, and the price is not gaining bullish strength.
If the BBTrend continues at these levels, Solana could remain in a sideways or downward phase, unless a sharp reversal pushes the indicator above zero. Traders often watch this indicator to assess whether a breakout is likely or if the market will stay weak.
SEC Delays Solana ETF Decision Again, Cites Market Concerns
On May 20, 2025, the United States Securities and Exchange Commission (SEC) delayed its decision on several Solana-based exchange-traded fund (ETF) applications. Companies affected include Bitwise, VanEck, 21Shares, Canary Capital, and Fidelity.
The SEC said it needs more time to review whether Solana markets are safe for investors and free from manipulation. Although the decision is not a full rejection, it continues the SEC’s cautious approach to approving crypto ETFs that do not involve Bitcoin or Ethereum.
This latest delay shows that the SEC remains careful when it comes to altcoin-based ETFs. The agency explained that it needs to study legal issues, market structure, and how well Solana’s trading environment can protect investors from manipulation.
Unlike Bitcoin and Ethereum, which have already received ETF approvals, Solana must clear several regulatory hurdles before approval is possible. The SEC has now opened a formal comment period, asking the public to share opinions on the pending Solana ETF proposals.
What’s Next for the Solana ETF?
The SEC’s next review deadline is in July 2025. By then, ETF applicants are expected to submit more data, propose stronger monitoring systems, and present strategies to reduce investor risks. However, there is no guarantee the SEC will approve the applications in July. The agency may request more details or delay the process again.
Solana remains a top altcoin with a fast and growing blockchain network. But before it can enter traditional finance through an ETF, it must first pass the SEC’s legal and safety checks.
For now, Solana stays in the regulatory waiting room.
Solana Prepares for a Consensus Switch with Alpenglow Innovation
Solana is set to upgrade its network consensus with the introduction of Alpenglow. In a major announcement at the Solana Accelerate event on May 19, 2025, research firm Anza revealed that Alpenglow will replace Solana’s current hybrid system based on Proof-of-History and TowerBFT.
Transitioning to a new era, Alpenglow focuses on significantly increasing consensus speed. The innovative protocol introduces two key components: Votor and Rotor. Specifically, Votor will serve as the voting mechanism. It finalizes blocks based on network participation – finalizing once or twice depending on the available stake. For example, when 80% of the stake is available, only one voting round is needed, but if only 60% participates, two rounds are required.
Meanwhile, Rotor will enhance data transmission within the network. Unlike Solana’s previous Turbine structure, Rotor will use single-layer nodes instead of a multilayer tree configuration. This change is expected to reduce the delays caused by multiple data “hops” during block propagation.
Furthermore, Alpenglow aims to reduce block finality time dramatically – cutting it from 12.8 seconds down to a median of 150 milliseconds. This improvement means that Solana can match, and even challenge, the responsiveness of traditional Web2 infrastructures. Consequently, the network’s overall speed and efficiency will improve substantially.
In addition, Solana founder Anatoly Yakovenko praised the Alpenglow model on social media, describing it as a “simple and elegant design that’s really easy to intuit.” His endorsement reflects the strong confidence within the Solana community regarding this upgrade.
Currently, the Alpenglow prototype is available for testing. Looking ahead, the new consensus mechanism could be integrated into the Solana testnet in the coming months. However, a full mainnet upgrade will depend on a Solana Improvement Document (SIMD) proposal expected later this year.
Overall, Solana’s upcoming transition to Alpenglow marks a significant step forward. The network not only bolsters its performance but also reinforces its commitment to innovation in the blockchain space.
