Solana's current focus is on three governance proposals that could significantly alter the network's supply structure. Voting will close at the end of epoch 1023, a point in time that has become one of the most important milestones on Solana's 2026 calendar.
The proposals include establishing a "Solana Charter" governance framework, an inflation reform that would reduce the issuance of approximately 18.9 million SOL over the next six years, and a new resource fee mechanism. This mechanism could increase the daily SOL burn from the current roughly 648 tokens to about 9,000 tokens, nearly a 14-fold increase.
Surrounding the vote, a "supply shock" bullish narrative has formed in the market. Traders appear to be betting in advance on the supply tightening post-implementation.
Can SOL Break Through $105
On August 25, SOL's daily candle opened at $98.64, reached a high of $102.14, and closed near $101.22. The weekly gain reached 31.87%, and the 30-day gain is close to 35.6%. This is more than just a short-term spike; it is a relatively sustained trend.
Significant resistance exists in the $100 to $105.18 region, with the 13-week high around $102.70. Support below lies at $88.18, with deeper support concentrated between $82 and $88, an area where the previous 20-day and 50-day Exponential Moving Averages (EMAs) also provided support.
If the price closes above $102.70, it could further test the $105 level, especially if the inflation reform vote passes. The base case scenario is for SOL to consolidate between $95 and $102, awaiting the voting results.
If the price faces rejection again at the resistance zone, SOL could retreat to the $88 to $90 pivot area, potentially breaking the current breakout structure. Any move to break above $102.70 would require volume confirmation; a low-volume breakout should be considered a warning sign.
SOL's 31.87% weekly gain has already delivered significant profits for traders who bought below $80. However, the market has partially priced in the supply tightening. The remaining upside from the current region to $105 is only in the single-digit percentage range, meaning the risk-reward ratio for chasing the rally now differs from the earlier stages of the uptrend.
