After the network upgrade: What prospects await SOL?

SIMD-0266 — Protocol proposal introduced by engineers at Anza last year — has now been officially approved.

According to a Twitter post, this upgrade will introduce p-tokens, a new token model designed to optimize computational efficiency across the entire Solana network. The main focus of the proposal is to simplify the processing of token transactions, thereby reducing the computational load on the network.

If successfully implemented, this change could significantly cut transaction processing costs on Solana and improve the system’s operational performance.

The upgrade is expected to launch on mainnet in April, marking another step forward in Solana’s scalability efforts.

Market Sentiment Reacts Quickly

This announcement has quickly triggered a noticeable market response. The Spot Average Order Size data shows an increase in buy order sizes, reflecting stronger accumulation activity from “whales” at the current price range.

Many large investors seem to have started opening positions early. This development appears strategic, aligning with upcoming protocol upgrades.

Source: CryptoQuant On a broader scale, Solana buyers are also dominating both the spot and futures markets. The Future Taker Cumulative Volume Delta (CVD) indicator recorded overwhelming buying pressure over the past 24 hours, indicating that buyers are controlling short-term cash flow.

The consensus between whale accumulation and strong demand often helps reinforce short-term bullish momentum. At the same time, this trend suggests futures traders are beginning to price in the potential impact of the upcoming protocol upgrade.

Source: CryptoQuant ## Technical Structure Approaching a Critical Point

From a technical perspective, this movement is also clearly reflected on the daily chart. Currently, SOL is approaching a key resistance zone — where two notable technical signals converge: the 50-day exponential moving average (EMA) and the upper boundary of the wedge pattern.

Price testing this area indicates the market is at a crucial juncture. If SOL can decisively break through this convergence zone, the upward momentum is likely to be strengthened and continue to expand.

Source: TradingView ## Will the upgrade trigger a breakout?

Whale accumulation early on, overwhelming buying pressure, and recent major network upgrades are sending positive signals to Solana investors.

Especially, the introduction of more computationally efficient tokens is expected to significantly improve network performance. In the long term, these factors all lean toward an optimistic scenario for the market.

However, attention remains focused on the resistance zone of the wedge pattern and the 50-day EMA. If the bulls can break through this area, the market could enter a new growth phase.

SN_Nour