---
title: "3 reasons why Solana price could approach $200 by March"
url: https://diffcoin.com/3-reasons-why-solana-price-could-approach-200-by-march/
description: "Solana (SOL) looks ready to undergo a massive upside move by March, based on a mix of technical and fundamental indicators.SOL price 'bull flag' breakout…"
published: 2024-01-18
updated: 2024-01-18
author: "Mila"
site: "Diffcoin"
---

# 3 reasons why Solana price could approach $200 by March

Solana (SOL) looks ready to undergo a massive upside move by March, based on a mix of technical and fundamental indicators.

## SOL price ‘bull flag’ breakout possible

As of Jan. 18, SOL’s price was testing the upper trendline of what appears like a bull flag pattern.

Bull flags are bullish continuation patterns characterized by the price moving inside a downward-sloping channel (flag) after a strong upside move (flagpole). They typically resolve after the price breaks above the channel’s upper trendline and rise by as much as the flagpole’s height.

Thus, Solana eyes a breakout above its flag’s upper trendline toward $194, up around 80% from current price levels, by March.

*SOL/USD daily price chart. Source: TradingView*

Conversely, a pullback from the upper trendline could send SOL’s price down toward its lower trendline near $80.

Nonetheless, the cryptocurrency may witness some accumulation, sideways price action at its 50-day exponential moving average (50-day EMA; the red wave) near $87, which has served as a long-term support zone. Staying inside the flag range would keep the breakout possibility intact.

## Solana ETF buzz

The approval of spot Bitcoin ETFs on Jan. 11 has raised industry hopes that other cryptocurrencies, including Solana, could also get a spot ETF in the future.

Franklin Templeton, a trillion-dollar asset management firm, fueled the Solana ETF buzz further after praising the blockchain for its advancements in DeFi, infrastructure, NFT innovation, and memecoins. The company already offers a namesake spot Bitcoin ETF product under the ticker (EZBC).

> Franklin Templeton has been leading the charge for integrating digital assets into the traditional financial space for years, and they’re setting their eyes on Solana
> 
> Can’t wait to see what the future holds https://t.co/Pk1ZIsrhmn
> 
> — Austin Federa | (@Austin_Federa) [January 18, 2024](https://twitter.com/Austin_Federa/status/1747783694499131718?ref_src=twsrc%5Etfw)

Anticipation of a spot Solana ETF could catalyze a surge in SOL price, similar to the rally Bitcoin experienced before its ETF approval.

## Fed rate cut expectations

Expectations of a dovish Federal Reserve can further boost Solana prices higher in the coming months.

CME’s Fed futures fund rate projections see a 59.5% probability of a 25 basis point interest rate cut in the U.S. by March 2024.

*Target rate probabilities for March 20 Fed meeting. Source: CME*

Lower interest rates can lead to a weaker U.S. dollar as yields on dollar-denominated assets fall. Cryptocurrencies like Solana, which are often priced against the dollar, can increase in value as the dollar weakens.

***Related: Fed rate cuts could be a boon for DeFi and stablecoins — Fidelity***

The U.S. dollar index’s (DXY) technical setup indicates a selloff period in the coming days. Notably, it has been forming a rising wedge pattern since December 2023, with its downside target between 101.50 and 102.25, depending on the breakdown point, as shown below.

*DXY daily price chart. Source: TradingView*

Therefore, Solana’s persistent inverse correlation with the U.S. dollar should also boost SOL’s likelihood of undergoing a major rally by March.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

[Source link](https://cointelegraph.com/news/3-reasons-why-solana-price-200-march)