Solana (SOL) Could Hit $600 in Bullish Crypto Market, Predicts Analyst Hansolar
Summary:
Market analyst Hansolar predicts a bullish run for Solana (SOL) in line with the cryptocurrency boom led by Bitcoin (BTC), with SOL's price potentially reaching $600. This projection follows the previous trends Ether showed during bullish market cycles. Key developments in Solana's network adoption and increases in total-value-locked have indicated strength in its fundamentals. The technical analysis points towards $200 as a primary target in the short term, based on a bullish continuation pattern or a potential drop to around $60.75 in the event of a breakdown.
Hansolar, a freelance market analyst, touts Solana (SOL) is primed for a bullish ascent in the present cryptocurrency market surge lead by Bitcoin (BTC). He conjectures that SOL's price could surge to $600. Hansolar's positive SOL hypothesis originates from its potential to mirror Ether's (ETH) pricing patterns during prior cryptocurrency market rises. For instance, in the bullish curve of 2020-2021, Ether's cost bolted from approximately $85 to $4,935, closely following Bitcoin's upward trend.
Notably, after Bitcoin reached a new peak of over $20,000, Ether experienced a nearly 1,400% incline, as illustrated by the three-day chart below. In 2024, Bitcoin aims for a prolonged bull run over its November 2021 record high of $69,000, which Hansolar believes will be advantageous for Solana.
Whenever Bitcoin achieved record highs, ETH soared and retail began investing in SOL, he explained. Today, SOL is approximately half its all-time high record, much like ETH was when BTC was approaching record highs.
Considering Bitcoin's predicted climb towards $150,000, based on Tom Lee, Head of Research at Fundstrat's forecast considering ETF approval prospects, Solana aims to reach a long-term peak of $600. That's close to 450% higher than the current SOL price.
In terms of network adoption, Solana's foundational strength has performed well recently, with its ecosystem's total locked value (TVL) at its peak since January 2023 at 20.51 million SOL. An increase in assets locked in DeFi platforms could theoretically result in these tokens' circulating supply decreasing, causing demand to surge and potentially boosting these locked tokens' price.
Solana's growth in TVL corresponds with its continued quarter-over-quarter (QoQ) growth as charted by data resource platform, Messari. Impressively, Solana's average daily fee payers sky-rocketed by 103% during Q4/2023, as its average daily DEX (Decentralized Exchange) volume exploded by 961%, and its daily NFT (non-fungible token) volume went up by 359%.
In the Q1/2024, Jupiter DEX's native token, JUP airdrop, boosted important on-chain activity on Solana’s blockchain. Similarly, peak NFT volumes nearing $5 billion highlighted robust underlying demand for SOL tokens.
From a technical perspective, Solana's primary focus is $200 due to the formation of a bullish continuation pattern on its daily graph. This bull pennant pattern evolve when the price stabilizes into a symmetrical triangle after a strong surge. It usually resolves when the price surpasses the triangle's upper line and elevates, mirroring the previous uptrend's height. As of the last day of February, SOL's price was near the pennant's upper line with potential breakout signaling a possible rise to around $200, which is approximately 75% above the current price.
If, however, the price falls below the pennant's lower edge, the bullish setup might be discarded. In that instance, SOL's price could sink to about $60.75, which is around 45% below the current price.
Published At
2/28/2024 6:03:09 PM
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