TLDR
Solana’s SOL token has rallied 13% in two days, breaking above $160.
Analysts predict SOL could reach targets of $180, $550, or even $1,000 in the next bull run.
The surge is attributed to increased network activity, memecoin popularity, and optimistic derivatives markets.
Solana’s total value locked (TVL) has surpassed BNB Chain, indicating growing ecosystem strength.
The potential approval of Ethereum ETFs is also contributing to positive sentiment for Solana.
Solana’s native token SOL has seen a significant uptick, rallying 13% between July 14 and July 16 and breaking above the $160 resistance level for the first time in five weeks.
This surge has caught the attention of traders and analysts, with some setting ambitious price targets for the cryptocurrency.
The recent excitement around SOL can be attributed to several factors. First, the final phase of Ethereum exchange-traded fund (ETF) approvals has created a ripple effect in the crypto market.
Bloomberg analyst Eric Balchunas reported that the U.S. Securities and Exchange Commission (SEC) has delivered final instructions to asset managers, with a potential launch date of July 23. This development has boosted sentiment across the cryptocurrency sector, including Solana.
Solana’s ecosystem has also been bolstered by the success of memecoins on its network. Thanks to low transaction fees, tokens like BONK and Dogwifhat (WIF) have achieved multi-billion dollar market capitalizations. This memecoin frenzy has contributed to increased network activity and enhanced liquidity in the Solana ecosystem.
The platform’s growing strength is reflected in its total value locked (TVL), which has now surpassed that of BNB Chain.
Solana has become the second-largest blockchain in terms of decentralized exchange (DEX) volumes, closing in on market leader Ethereum. Notable projects on the Solana network, such as Jito, Kamino, and Jupiter Perpetual, have seen significant growth in TVL over the past month.
Derivatives markets are also showing bullish sentiment for SOL. The SOL futures premium currently stands at 12%, indicating cautious optimism among traders. This is particularly noteworthy considering SOL has gained 25.7% over the past eleven days.
While some analysts are eyeing a near-term target of $180 for SOL, others have set their sights much higher.
A pseudonymous analyst on TradingView, known as ‘NoLimit’, has presented a bullish scenario that could see SOL reach $550 or even $840, representing a potential 450% increase from its current value. This prediction is based on technical analysis, including a cup and handle formation and Fibonacci extension.
Even more optimistically, some experts believe SOL could hit $1,000 during the next bull run. Analyst Captain Faibik stated on social media, “I believe $SOL #Solana will hit the $1,000 mark in the upcoming Bullish Rally.” This projection aligns with Solana’s historical growth trajectory and its recent recovery from a prolonged downtrend.
I believe $SOL #Solana will hit the $1,000 mark in the upcoming Bullish Rally…
pic.twitter.com/YKSGrmsgiq
— Captain Faibik (@CryptoFaibik) July 15, 2024
Daniel Cheung, another market observer, compared the current situation to previous bullish periods for Solana. He noted, “My gut tells me we are playing on a similar fractal to Q3’21 with shades of Q4’20 — in both cases the most explosive returns were just around the corner.”
$SOL closed the week bullish — things are starting to look exciting again.
My gut tells me we are playing on a similar fractal to Q3’21 with shades of Q4’20 — in both cases the most explosive returns were just around the corner.
Solana will continue to be the home of onchain… pic.twitter.com/l9jDN3GIV3
— Daniel Cheung (@HighCoinviction) July 15, 2024
As Solana continues to gain momentum, all eyes will be on its price action and ecosystem development in the coming weeks and months.
The post Solana (SOL) Price Breaks $160 Resistance: Will it Hit $1000 This Bull Run? appeared first on Blockonomi.
