Solana price recently had high market activity, trading around the $148 level at the time of writing.
Technically, Solana might be in for a change of direction, with crucial chart patterns and an increasing interest in the derivatives market driving it.
The Solana price has fallen by 4.83% in the last 24 hours, but SOL is up over the week. According to analysts, SOL has entered into a symmetrical triangle that could lead to a breakout soon, while the trading volume was up 33% in the last day.
This would also mean that if the token were to break above resistance now, then it could head all the way up to $220, which would provide a 53.28% potential rise from present levels.
Traders are, therefore, closely watching the potential of this breakout, awaiting confirmation of an upward rally.
Due to the outbreak of NFT hype and increased demand in the DeFi community, Solana price more than tripled throughout Summer 2021.
That growth came off by the end of 2022, with SOL changing hands for $152.62 on September 30, 2024, roughly at the same valuation as it was at the beginning of 2021.
The fall of crypto trader FTX in 2022 seriously dented the token, as FTX and sister company Alameda Research sold a ton of the cryptocurrency to avoid bankruptcy.
One wallet affiliated with FTX/Alameda recently redeemed $23.75 million in SOL from the Proof-of-Stake network.
Crypto analyst RichRangatang recently predicted that SOL could rally as high as 40%.
In a post published on TradingView, he has pinpointed several key indicators on Solana price weekly chart to form a foundation for his analysis.
That shows that its Relative Strength Index (RSI) is well in line with the moving average and that MACD has just crossed above its signal line-high indicators that a strong price increase could be looming.
Currently, the cryptocurrency is trying to break the important resistance level, and in case a breakthrough takes place, analysts believe the price might go as high as $220, where investors could earn an attractive profit.
SOL presently changes hands at 156.4 USDT, which traders are seeing as a very good opportunity to join in with expectations of the surge higher.
While already ambitious, RichRangatang’s forecast is dwarfed by analysts who have gone further.
The famous analyst InvestingScope has given Solana price an impressive target of $5,000.
In fact, this came after it posted a 22% recovery from the recent lows, inspiring optimism for sustained upward momentum into the deeper parts of Q3 2024.
SOL recently jumped 3% in price, breaching the $153 level and commanding significant attention in the markets.
The move has come at a time when a report by VanEck Research has suggested that SOL is poised to jump as high as $330, underpinning its increasing positioning in the highly competitive crypto ecosystem.
Besides an increase in Solana price, the token witnesses real-world adoptions, a trend that continues to catalyze the 2024 bull run.
This is evidenced by the recent announcements of major financial institutions in showcasing the capability of this network for mainstream use.
An excellent example is PayPal itself, at the start of the year announcing the launch of its dollar-backed stablecoin, PYUSD, on Solana.
“The scalability of Solana’s infrastructure and its ability to extend the utility of tokens make it an ideal blockchain for payment processors,” said the head of PayPal’s blockchain unit.
On the asset management side, VanEck and 21Shares are working towards offering a token exchange-traded fund.
Filings for the firms were pulled from the Cboe website shortly after being submitted, but the companies insist their plans for a SOL ETF remain in play.
Yet some industry watchers are trying to temper expectations around a near-term Solana ETF.
Nate Geraci, co-founder of the ETF Institute, recently said a SOL ETF isn’t likely to pop up “anytime soon,” and SEC Commissioner Hester Pierce has also tempered hopes, saying the regulator would need “pretty compelling reasons” to greenlight any fresh filings.
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