Solana
Cryptocurrency expert predicts $600 price target
In recent weeks, Solana (SOL), the 5th largest cryptocurrency on the market, has been on a downward trajectory, hitting a two-month low of $121 on Friday. The coin’s value struggled to surpass the $188 level in May, leading to a continued decline downward trend The situation has worsened further in the last seven days with the general market correction.
However, crypto analyst Jelle has sparked optimism by suggesting the potential for substantial gains for SOL in the coming months, reminiscent of the legendary “Solana Summer” of 2021.
Analyst draws parallels to 2021’s ‘Solana Summer’
Jelle took to social media to share a analysis of SOL’s price action, drawing parallels between its current behavior and the events of the summer of 2021. The analyst noted months of consolidation, characterized by lower highs while maintaining support above the $120 level.
Jelle pointed out that SOL is rebounding from the weekly intermediate level of the Relative Strength Index (RSI), mirroring the trend seen in July 2021. Encouraged by these similarities, Jelle boldly believed in the future of Solana, setting a target of $600 for this market cycle.
During the Solana Summer of 2021, the price of SOL more than tripled between July and November. The coin’s market cap increased significantly, from a pre-summer low of $10 billion to an impressive high of $63 billion by the end of the year, ultimately driving the SOL price to its current level historical record from $259.
Jelle’s optimistic outlook suggests even greater upside potential this time around. An increase from the current trading price of $141 to $600 would represent a remarkable 352% increase, surpassing the coin’s current value.
Nonetheless, Solana faces immediate resistance just above its current trading price at $143, a formidable barrier that has proven difficult for the token over the past six days.
The next targets are the 200-day exponential moving average (EMA) and the $150 resistance level. 200-day exponential moving average served as a crucial support level for the token over the past six months, contributing to its price appreciation in the first quarter of this year, reaching a yearly high of $210 on March 18.
Reclaiming the 200-day EMA would be imperative for Solana bulls as it would position the token to target and surpass its next hurdle at $170.
Market capitalization sees double-digit decline
Looking at key financial indicators to assess Solana blockchain performance and price correlation, Token Terminal data shows that Solana’s fully diluted market cap is $80.78 billion. However, this figure represents an 11.9% decline over the last 30 days.
Solana’s circulating market cap, which takes into account the number of tokens actively traded on the market, currently stands at $64.54 billion. Like the fully diluted market cap, this metric has seen an 11.4% decline in value over the past 30 days, as has SOL’s price.
However, despite the recent market decline, Solana’s token trading volume Over the past 30 days, the stock has remained relatively flat, with a trading volume of $77.37 billion, indicating continued interest from optimistic investors.
Featured image of DALL-E, chart from TradingView.com