Following Donald Trump's election on November 5, the cryptocurrency market generally rebounded, and Solana (SOL), now ranked sixth by market cap, has regained a bullish trajectory, recently reclaiming the $230 price level.
On Wednesday, Solana's price surged nearly 7%, reaching $232 after hitting an all-time high of $263 on November 23, following a two-week correction period.
Will Solana's price soar to $4,000?
Recent price trends indicate that Solana is not only likely to retest its previous peak but could also significantly surpass that peak.
Cryptocurrency analyst Ali Martinez emphasized that a bullish 'cup and handle' pattern has formed on Solana's one-month chart, suggesting a potential significant upward trend.
Martinez predicts that if this pattern holds, Solana's price could rise by more than 1,650%, setting a new record of $4,000 per token.
However, analysts have differing opinions on Solana's future trajectory. While analysts like Cryptorangutan emphasize the current momentum indicators and established buying pressure, predicting Solana will soar to the $300 mark, others urge caution.
On the other hand, analyst MoreCryptoonl noted that the pullback structure has been completed, indicating a clear five-wave downward trend. This analysis suggests that while a recovery rebound is underway, it remains uncertain whether it will develop into a bullish pattern or an ABC corrective structure.
Total locked value reached $9.198 billion
Despite mixed technical signals, key financial indicators overall are optimistic about Solana's prospects. According to CoinMarketCap, Solana's market cap is approximately $112.73 billion, making it the sixth largest cryptocurrency.
In addition, its total locked value (TVL) has reached $9.198 billion, reflecting ongoing interest in its decentralized finance (DeFi) ecosystem. However, the trading volume on decentralized exchanges (DEX) has decreased by 25% to $28 billion, indicating some volatility in trading activity.
Recent market developments have further fueled discussions around Solana. Grayscale's application for a Solana spot ETF in the U.S. has caused a stir, as the cryptocurrency community anticipates increased institutional investment.
Furthermore, the Jupiter project modified its $1.6 billion airdrop plan after a failed vote, while the Pump.fun platform, despite experiencing a 66% weekly drop, still reported record revenues of $93 million in November.
In the DeFi space, as Tron’s TVL surged 78% to $13 billion, Solana has slipped to third place, but it still maintains a strong lead with 5.56 million active addresses.
However, the recent decline in DEX revenue and trading volume, particularly with Raydium experiencing an 8.22% drop, indicates that trading activity within the ecosystem needs stabilization.