Solana
Will Solana Follow Ethereum? SOL Analyst Targets $2,800
Solana, like Bitcoin and Ethereum, remains bearish. Although prices are higher at spot rates, the downtrend remains. Observing the candlestick pattern, this outlook will change once the bulls push prices at least above $155 and later $190.
Will SOL reach $2,800?
As Solana benefits from last week’s selling pressure, adding 20% from June 2024 lows, some observers are optimistic, predicting more gains in the months ahead.
In an article on X, an analyst, citing the evolution of the SOL price over the last few months, note that the coin could outperform the broader market, reaching at least $2,800 in the next bull cycle.
Specifically, the analyst drew parallels between SOL’s current price action and Ethereum’s 2018 price action. After rallying to around $1,400, recording a new high, the coin tanked in 2018, dropping below $100 and reversing most of the gains from the previous bull cycle.
In 2021, Solana, riding the wave of loose monetary policy and free liquidity, soared to $240. However, the cryptocurrency contracted after reaching a peak, crashing to $8 in November 2022. The fall worsened after the collapse of FTX and Alameda Research.
Interestingly, the analyst observed that ETH saw steep losses after a rally, only to rebound more than 20x in 660 days.
Given that the depth of the 2018 and 2022 retracements of ETH and SOL were almost the same, the analyst believes that there will be more room for SOL to surge higher. According to the analyst, SOL will likely peak above $2,800 in the coming sessions.
Solana, the home of Meme Coins, hopes for a Spot ETF
This optimism could be explained by several factors, including Solana’s growing notoriety in recent months.
Attracted by the low fees and high scalability of the mainnet, developers, especially of meme coin projects, are increasingly attracted to the network. So far, popular meme coins with billions in market cap, such as BONK and BOME, are live on Solana.
Additionally, the recent decision by VanEck and 21Shares to apply Solana’s cash exchange-traded funds (ETFs) have been positively received.
While these filings are still in their early stages and are ready to be reviewed by the ever-strict U.S. Securities and Exchange Commission (SEC), there is hope due to the events surrounding spot Ethereum ETFs.
If a Solana spot ETF is approved in the US, institutions will be free to gain exposure, which will further drive up prices.
Main image from Canva, chart from TradingView