Like Bitcoin and Ethereum, Solana continues to exhibit bearishness; prices are elevated at market rates, and the downward trend persists
This preview will transform once investors elevate prices to a minimum of $155 and $190, as indicated by the candlestick arrangement.
Is it possible for SOL to reach $2,800?
Some observers are optimistic, anticipating additional gains in the months ahead as Solana continues to absorb the selling pressure of the previous week, adding 20% from its June 2024 lows.
Preceding the release of critical US data, the cryptocurrency market experienced a significant decline amid inflation concerns.
In a post on X, one analyst observed that the coin could outperform the broader market, tearing to at least $2,800 in the next bull cycle, citing the SOL price evolution over the last few months.
The analyst specifically highlighted the similarities between the current price action of SOL and Ethereum in 2018. The coin experienced a significant decline in 2018, plummeting below $100 and reversing most gains from the previous bull cycle despite reaching a new high of approximately $1,400.
In 2021, Solana experienced a significant increase in value, reaching as high as $240, due to the free currency flow and lax monetary policy. Nevertheless, the coin experienced a substantial decline following its zenith, plummeting to a low of $8 in November 2022. The collapse of FTX and Alameda Research exacerbated the waste.
Intriguingly, the analyst noted that ETH experienced significant losses following a rally, only to rebound by more than 20X within 660 days.
The analyst believes there will be more space for SOL to soar higher due to the nearly identical depth of ETH and SOL’s 2018 and 2022 retracements. The analyst anticipates that SOL will peak at over $2,800 in subsequent sessions.
Solana, the birthplace of meme coins, is the site of potential exchange-traded funds.
A variety of factors may influence this optimism. One of them is the increasing prominence of Solana in recent months.
Developers, particularly those involved in meme coin initiatives, are increasingly attracted to the mainnet due to its high scalability and low fees. So far, Solana has enabled the operation of prominent meme coins, including BONK and BOME, which have a market capitalization of billions.
Furthermore, the recent decision by VanEck and 21Shares to register for spot Solana exchange-traded funds (ETFs) has been well-received.
While these filings are still in the preliminary phases and are scheduled for review by the consistently rigorous United States Securities and Exchange Commission (SEC), there is optimism due to the events surrounding spot Ethereum ETFs.
Institutions can increase their exposure, further escalating prices if a spot Solana ETF is approved in the United States.
