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Solana, like Bitcoin and Ethereum, remains bearish. Though prices are higher at spot rates, the downtrend remains. Looking at the candlestick arrangement, this preview will change once bulls push prices at least above $155 and, later, $190.
Will SOL Soar To $2,800?
While Solana soaks in the selling pressure of last week, adding 20% from June 2024 lows, some observers are upbeat, predicting more gains in the coming months.
In a post on X, one analyst, citing SOL price evolution over the last few months, noted that the coin might outperform the broader market, ripping to at least $2,800 in the next bull cycle.
Specifically, the analyst drew parallels between the current SOL price action and Ethereum in 2018. After soaring to roughly $1,400, registering a fresh high, the coin tumbled in 2018, dropping below $100 and reversing most gains of the previous bull cycle.
In 2021, Solana, riding on the wave of lax monetary policy and free cash, expanded to as high as $240. However, the coin contracted after peaking, crashing to as low as $8 in November 2022. The dump was worsened following the collapse of FTX and Alameda Research.
Interestingly, the analyst observed that ETH posted sharp losses after rallying, only to rally by over 20X within 660 days.
Because the depth of the 2018 and 2022 retracements of ETH and SOL were almost the same, the analyst thinks there will be more room for SOL to rip higher. According to the analyst, SOL will likely peak at over $2,800 in future sessions.
Solana Home Of Meme Coins, Spot ETF Hopes
There are possible drivers behind this optimism. One of them is the rising prominence of Solana over the past few months.
Drawn by the low fees and high scalability of the mainnet, developers, especially of meme coin projects, are increasingly drawn to the network. So far, popular meme coins commanding billions in market cap, like BONK and BOME, are live on Solana.
Additionally, the recent decision by VanEck and 21Shares to apply for spot Solana exchange-traded funds (ETFs) has been received positively.
While these filings are still in the early stages and set for review by the always stringent United States Securities and Exchange Commission (SEC), there is hope due to events surrounding spot Ethereum ETFs.
If a spot Solana ETF is approved in the United States, institutions will be free to gain exposure, lifting prices even higher.
Feature image from Canva, chart from TradingView
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