2024-11-23 11:19 |
Solana price is firing on all cylinders, and technicals suggest that the rally is just beginning. It has jumped for three consecutive days and reached its all-time high of $260. It has soared by more than 3,000% from its lowest level in 2023.
Solana price could jump to $8,000The weekly chart shows that the price of Solana has been in a remarkable comeback after bottoming at $7.65 in 2023 as the FTX crisis was continuing. With the crisis now behind us, there are chances that the coin is about to stage one of the top rallies in the crypto industries.
That’s because it has been forming a cup and handle pattern, which is a popular sign of a bullish continuation. This pattern is known like that because it has a close resemblance to a cup, which has a rounded bottom and a handle.
In this case, the upper side is $260, which is about 3,000% above the lowest level in 2023. To do a good SOL price forecast, you need to measure the 3,000% distance from $260. If this happens, it means that the coin will surge to $8,000.
The challenge with the C&H pattern is that it usually takes a lot of time. For example, it has taken three years for the SOL price to complete the cup section of the pattern.
At the same time, the coin has remained above the 50-week and 200-week moving averages, a sign that bulls are in control. Solana’s oscillators like the Relative Strength Index (RSI) and the Stochastic have continued rising in the past few months.
Additionally, Solana has moved above the ultimate resistance of the Murrey Math Lines, meaning that it has two more levels to climb: overshoot at $281 and extreme overshoot at $312. The upper side of this pattern is about 21% above the current level.
The bullish SOL price forecast will become invalidated if the coin drops below the weak, stop & reverse point at $218.
SOL price has numerous fundamentalsSolana’s rally is being supported by its strong fundamentals. First, the futures open interest for the coin has jumped to a record high of $6 billion, a remarkable thing for an asset whose interest was below $600 million in 2023. This futures open interest is a sign that investors and traders in the futures market have strong demand.
Read more: Solana price rally: can bulls push SOL past $350 after crossing $241?
Second, the Solana ecosystem is booming as the meme coin ecosystem hits a market cap of over $20 billion. The biggest coins in this network are Bonk, Dogwifhat, Popcat, and Peanut the Squirrel. This valuation means that Solana accounts for 18% of the meme coin industry.
Third, this meme coin growth has translated to a spectacular volume in the DEX ecosystem. Data shows that Solana’s DEX network handled volume worth $5.67 billion in the past 24 hours, higher than what Ethereum and Base processed in the same period combined.
The volume this month was $102 billion, more than double what Ethereum has processed. This is remarkable because Ethereum had the biggest market share in the sector a few months ago, helped by Uniswap.
The same trend is happening in the perpetual futures market, where Solana has become second only to Hyperliquid. Its networks handled volume of $2 billion in the past seven days, higher than $1.26 billion that Ethereum processed.
Additionally, there are rising odds that companies will file for a Solana ETF, which Gary Gensler has rejected. Under the Trump administration, there is a likelihood that these funds will be applied even with staking features, leading to more inflows.
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