Solana's token SOL, as the core asset of a high-performance public chain, derives its value support from three dimensions: network technological capabilities, ecosystem application scale, and institutional participation. Recently, market discussion has been very active; let's take a look at the logic behind this transaction.

**Trading Parameters**

The suggested entry range is between $123 and $138. The target is divided into three stages: first stage 165-220, second stage 250-400, third stage 500+. For risk management, a stop-loss should be set below $118.

**Why are we bullish? There are three core reasons**

First is the powerful technical aspect. The Alpenglow upgrade scheduled for 2026 will significantly improve transaction finality time from seconds to milliseconds, representing a qualitative leap in performance. On the infrastructure side, the Firedancer upgrade has already laid a solid foundation, with considerable potential for future throughput and stability improvements.

Second is the fundamental outlook. Data from Bitwise is quite interesting: by 2026, institutional demand for SOL could reach a 20-50 times premium over new issuance, indicating a structural buying pressure is coming. The ecosystem data is also very impressive—daily transactions exceeding 3.5 billion, over 50 million active addresses monthly, and DeFi lock-up scale surpassing $8.1 billion. These indicators all show that network activity continues to strengthen.

Finally, there are signals from the capital side. Data from the beginning of this year shows that large funds are shifting from Bitcoin to leading altcoins like SOL, with net capital inflows into Solana increasing by 1000% year-over-year, and its price performance leading the market. This capital shift often signals a change in market focus.

Connecting these three dimensions, SOL indeed has the potential for a good opportunity in 2026. Of course, any trading decision should also consider your own risk tolerance.