A critical warning has been issued for users of Solana-based decentralized finance (DeFi) platforms about a malicious Chrome extension known as “Bull Checker.” This alert was issued by Jupiter, a leading decentralized exchange aggregator on the Solana blockchain, following investigative collaboration with cybersecurity experts and community support. A Warning for All Solana Users Jupiter’s research […]
Solana (SOL), one of the largest digital assets in the market by market capitalization, has been in a period of price consolidation, oscillating between the $140 and $150 price range. This period follows a significant drop that saw SOL plummet to $109 on August 5th, with a modest recovery since then. However, despite its resurgence, Solana has struggled to break above upper resistance levels, reflecting a pattern reminiscent of Bitcoin’s (BTC) price movements for the past week. Solana Price Forecast According to crypto analyst “XForce,” Solana is currently positioned in a way that is strikingly similar to Bitcoin’s price action, just on a different scale. Related Reading: Will The Bitcoin Price Return To $20,000? Crypto Analyst Provides Answers The analyst contends that Solana is likely in the midst of a “wave 4” consolidation phase and is poised to enter a “wave 5” that could potentially double its current all-time high of $259, reached during the November 2021 bull run. This would imply a price target of approximately $400-$500 for Solana at the top of this market cycle, which could represent a price increase of nearly 250% from current market levels. However, the analyst also warns that in the near term, Solana could experience a deeper correction, with targets potentially as low as a 22% drop to $110 or even a sharper decline to the $75 mark. This scenario is based on the analyst’s belief that Solana could enter in a “wave Y” correction. Bearish Pattern Emerge, Threatening $100 Support Adding to the technical analysis, Ali Martinez has recently spotted a potential head and shoulders pattern forming on Solana’s hourly chart. This pattern suggests that a breach below the $141 level could trigger a correction, sending Solana down to the $122 range. This level is of particular importance for Solana bulls, as a breach below $141 could potentially jeopardize the token’s year-to-date macro uptrend, which has been in place since February. If the $122 level is lost, the theory put forth by XForce, the first analyst, could come into play, with Solana potentially retesting the crucial $100 support floor. This would be a significant test for the token’s long-term prospects, as a breach of this level could have broader implications for Solana’s overall market sentiment and investor confidence. Related Reading: Ethereum Price To Hit New All-Time High If This Happens: Crypto Analyst Currently, SOL is trading at $144, down over 2% in the 24-hour time frame, mirroring the broader market’s price action. However, in the case of further catalysts for the token’s price action, there are also crucial levels to overcome if the bulls want to get past the $200 mark. On the SOL/USDT daily chart, the first hurdle that led to the current consolidation range for SOL was at $153, as the first barrier that prevented a test of the next obstacle at $163. Gaining these two levels in the short term will be key to anticipate a move towards $183 before a leg up to the $200 mark. Featured image from DALL-E, chart from TradingView.com
The Solana meme coin ecosystem has been one of the major talking points in this bull run, as crypto investors continue to bet on tokens that launch from the meme coin generator Pump.fun. However, Solana traders might be having a rethink as data from the on-chain analytics platform Dune shows a dwindling interest in these […]
Ethereum and Solana registered net inflows last week despite a price correction among most cryptocurrencies. According to the most recent Digital Asset Fund Flows Weekly Report published by CoinShares, the cumulative inflows into these investment products reached an impressive $176 million over the week. This positive trend was consistent across all regions, with each registering […]
In a major turnaround, Solana (SOL) has managed to bounce from a 6-month low of $109 to consolidate above the $150 mark in the past 24 hours, solidifying its status as one of the best performers in the market year-to-date. The recent market rally has breathed new life into Solana, but according to crypto analyst Miles Deutscher, this is just the beginning. In a detailed social media post, Deutscher revealed 10 reasons why he believes SOL is poised for a staggering 5x to 10x upside move, with the potential to reach the $1,000 price point. Reasons Why Deutscher Is Mega Bullish On Solana Deutscher’s first point centers on Solana’s consistent relative strength throughout the market cycle. The analyst contends that SOL has maintained its position and garnered significant mindshare, particularly within the meme coin sector. Deutscher also emphasizes the role of attention in driving price action, noting that Solana’s prominence was underscored during the recent Bitcoin conference, where it ranked second only to BTC regarding mindshare, creating a positive feedback loop, and fueling SOL’s ascent. Related Reading: Bitcoin Price Soars Above $62,000 Again: Top 3 Reasons Deutscher also draws attention to Solana’s status as a “thriving crypto hub,” likening it to a premier casino where meme coins—akin to games—flourish, with the SOL token serving as the exchange medium. This dynamic ecosystem, he suggests, contributes to the overall value accrued within the Solana network. Another key factor in SOL’s favor, according to Deutscher, is its market cap differential from that of Ethereum (ETH). With Ethereum having a significantly higher market cap valuation, SOL benefits from “speculation opportunities,” especially as its metrics continue to outperform Ethereum’s. Deutscher points out that a potential repricing of ETH could further boost SOL’s market cap, potentially leading to a valuation of $1,320 or $660 per SOL. In addition, the analyst noted that SOL is currently on the verge of breaking through SOL/ETH resistance on the weekly chart, which he believes “After that, it’s clear skies ahead. Booming DeFi, Revenue, And Institutional Adoption Delving deeper into Solana’s ecosystem metrics, Deutscher highlights its leading position in decentralized finance (DeFi) user growth, surpassing established chains like Bitcoin and Tron. The network’s Total Value Locked (TVL) has surged to new highs, reaching $5.367 billion, while its decentralized exchange (DEX) volume has outpaced Ethereum on a rolling 30-day basis. Moreover, Solana’s revenue generation has surpassed that of major players in the crypto industry, like Ethereum, underscoring its prominence in the crypto sphere. Related Reading: Toncoin Rally Above 4-Hour 100-Day SMA Puts TON On The Path To $7.6 Deutscher also praised Solana’s latest upgrade, Firedancer, which aims to increase scalability, network efficiency, and institutional compatibility, as a major milestone for the blockchain and another reason to be bullish on the token’s prospects. The analyst also noted that asset management giant Hamilton Lane had launched a fund on the network, as NewsBTC reported in July, signaling growing institutional interest in the Solana ecosystem. Finally, the prospect of a spot Solana ETF, as proposed by VanEck, could potentially usher in a new wave of institutional capital, paving the way for further adoption and growth within the Solana ecosystem. At the time of writing, SOL was trading at $153, down 6% from Thursday’s weekly high of $163. Featured image from DALL-E, chart from TradingView.com
A crypto analyst has reignited the debate between Ethereum (ETH) and Solana (SOL), evaluating which cryptocurrency was more superior. Considering recent market trends and performances of both altcoins, the analyst has finally identified a clear winner in the competition. Solana Wins Battle Against Ethereum In a recent X (formerly Twitter) post, legendary crypto trader and analyst, Peter Brandt drew a comparison between Solana and Ethereum, spotlighting their fundamental characteristics, strengths and weaknesses. Based on his analysis, Brandt suggests that it was inevitable that one will be recognized as the clear winner or superior blockchain and cryptocurrency. Related Reading: Ethereum Vs. Solana: Legendary Trader Peter Brandt Reveals The ‘Clear Winner’ Sharing a price chart of Solana/Ethereum, the analyst offered a critical view of Ethereum, highlighting several vulnerabilities that are plaguing the blockchain. Despite being the second largest cryptocurrency by market capitalization, Brandt has described ETH as a difficult network to use, likely attributing this to its slow transaction speeds. He stated that Ethereum was expensive, cumbersome, and flawed. Moreover, the analyst has cast doubts on Ethereum’s claim to decentralization, suggesting that the blockchain was not as decentralized as it presents itself to be. On the other hand, Brandt praised Solana for its numerous strengths and noteworthy characteristics. The analyst points out that Solana’s ability to offer high speed transactions at a fraction of the cost of Ethereum was impressive. Brandt also disclosed that Solana’s network was easier to use, making it more accessible to developers and users. Additionally, the analyst highlights that Solana maintains a strong technical base, possibly referring to the blockchain’s unique Proof Of History (PoH) consensus mechanism. From the analyst’s perspective, Solana’s strong fundamentals and superior functionalities gives it a significant edge over Ethereum. He concluded his analysis with a bold prediction, stating that Solana could gain 100% in value relative to Ethereum in the months ahead. This underscores the analyst’s belief that Solana could potentially outperform Ethereum in the market. While Brandt’s comparison of Ethereum and Solana may suggest a bias against Ethereum, the analyst has clarified that he actually does not dislike ETH. ETH Forms Death Cross While SOL Surges To $160 A crypto analyst identified as ‘KickEx’ revealed in an X post that Ethereum and Bitcoin are forming a death cross on their respective price charts. The analyst notes that ETH’s recent market crash has led to the formation of a worrisome technical pattern. Related Reading: CryptoQuant CEO Says Bitcoin Price Could Reach New ATH If It Holds This Level KickEx has disclosed that if the death cross pattern plays out, Ethereum may experience a massive price decline in the liquidity range of around $2,000 per coin. At the time of writing, the cryptocurrency is trading at $2,682, reflecting a 10.84% increase, according to CoinMarketCap. While Ethereum’s price faces a potentially bleak future outlook, Solana has been performing relatively well in the market. The cryptocurrency recently hit the $160 price level, marking a rise of over 10%. Although the cryptocurrency has since retreated to $157, Solana continues to show strong bullish signals amidst market downtrends. Featured image created with Dall.E, chart from Tradingview.com
Solana, Bitcoin, Ethereum, and the broader crypto market experienced a tumultuous start to the week, with one of the most severe price crashes since the collapse of FTX. While macroeconomic factors were primarily responsible for this downturn, substantial sell orders from Jump Crypto, a division of the prominent Chicago-based quantitative trading firm Jump Trading Group, also played a significant role. In the 10 days leading up to the crash, Jump Trading transferred $277 million worth of ETH to various exchanges, significantly intensifying selling pressure across the cryptocurrency market. Additionally, Jump Trading liquidated 11,500 ETH (valued at approximately $29 million) from its holdings in Lido Finance, further contributing to its extensive sell-off. This aggressive selling activity by Jump Trading has sparked widespread speculation regarding the firm’s potential full-scale withdrawal from the crypto sector. What Jump’s Rumored Exit Could Mean For Solana These movements have ignited speculation within the community regarding Jump’s potential withdrawal from the sector, a scenario that could have profound implications for specific projects, especially Solana. Jump Crypto has been deeply involved with Solana, not least through its development of the Firedancer validator client, which is set to become one of the most crucial components of the Solana network infrastructure in the near future. Related Reading: Solana (SOL) Jumps 39% From Crash Low, But Is This Rally Sustainable? Jonah van Bourg, a crypto analyst and host of the 1000x podcast, has provided an exposition on what the rumored exit of Jump’s crypto activities could mean for Solana. Van Bourg explains, “Jump’s rumored exit will impact Solana and Firedancer. Here’s my take: Jump would not build Firedancer for free. Based on what I have heard, I think it’s reasonable to assume that Jump received millions of units of locked SOL as compensation for their multiyear effort building a complex validator client.” The implications of Jump’s potential exit are multifaceted. Van Bourg suggests that despite the rumors, Jump is unlikely to completely sever ties with Firedancer or Solana immediately due to the “megacontracts” involved that include extensive legal documentation. This suggests a structured, rather than abrupt, transition, which may stabilize immediate impacts but introduces long-term uncertainties. “In other words, Jump can’t (and shouldn’t) walk away. Thus, Jump will probably continue to develop & support Firedancer for some time,” Van Bourg adds. Related Reading: Solana (SOL) Bounces 30% Amid Market Recovery, Analysts Remain Bullish Furthermore, the expert speculates on the financial motivations underlying Jump’s future involvement, “They will not be doing so out of an altruistic desire to design the decentralized utopia of the future, as Mustache Warrior would often claim (in an insult to everyone’s intelligence). Instead, this is unquestionably about vesting 8-10 figures worth of compensation.” Despite this, Van Bourg remains bullish on Solana in the near term, suggesting that fears of a massive sell-off by Jump are overblown. “I am not worried about Jump unloading their mammoth position anytime soon. I remain bullish SOL and have been accumulating on dips for some time,” he declares. Yet, he also pragmatically acknowledges the possibility of Jump reducing its position strategically post-Firedancer contract expiration, “once the Firedancer contract sunsets, it would be irrational to assume that an economic actor as savvy as Jump wouldn’t exit their length, especially at higher prices. This is precisely what they [probably] just did with their ETH and ETH ecosystem deals.” At press time, SOL traded at $154.17. Featured image from Chainalysis, chart from TradingView.com
The Solana price has been rocked by the latest bombshell revelations surrounding the collapse of crypto exchange FTX. According to a whistleblower claiming inside knowledge of FTX’s operations, the now-bankrupt company is secretly holding a massive stash of Solana tokens – up to 8% of the entire SOL supply. Triggering Fears Of Massive Sell-Off By the numbers, if these allegations are true, this would equate to approximately 46.5 million SOL tokens worth about $7 billion at the current market price, which is $155 at the time of this writing. Related Reading: Cardano Goes Toe-To-Toe With Ethereum As Whales Scoop Up 120 Million ADA “I’m not saying Solana will go to zero, but if this news is true and FTX starts to sell the tokens in the open market, then it could dump the price of Solana significantly,” warned a crypto user who spread the news on social media site X, known only as Wise Advice. In the wake of the news, Solana’s price plummeted below the critical $160 support level, dropping over 9% in the past two weeks and nearly 4% in the past 24 hours as rumors of FTX’s secret SOL holdings circulated. Solana Price Risks Freefall The revelations come on the heels of the FTX estate’s previous sell-off of discounted SOL tokens to repay creditors affected by the exchange’s collapse. Just two months ago, Bitcoinist reported that the estate offloaded a $2.6 billion trove of SOL at around $102 per token. Venture capital firms like Pantera Capital and Figure Markets scooped up large portions of this discounted SOL allocation. It is worth noting that these tokens remain subject to a multi-year vesting period, limiting their immediate impact on Solana’s market dynamics. On the other hand, the alleged hidden FTX stash, if true, could overshadow the impact of these sales and pose a formidable challenge to the Solana price in the near term. Related Reading: Bitcoin Down But Not Out: BTC To $700,000 Highly Probable Says Analyst With the potential for over $7 billion in Solana tokens to eventually hit the market, the cryptocurrency’s price may face intense selling pressure that could undermine its bullish prospects. Still, it is imperative to note that these are only rumors and have not been confirmed by the exchange’s bankruptcy state, and that no further information has been released on the matter, including whether the state overseeing the exchange’s repayment operations plans to sell these tokens to repay creditors, if true. Potential $140s Plunge In terms of immediate price action, crypto analyst Pratty Crypto has highlighted several technical factors that could signal further downside continuation for the cryptocurrency in the coming days. Pratty Crypto contends that Solana is facing a “lot of confluence” that points to a potential move towards the $140 zone. This includes Solana trading at a discount to the previous quarter’s mid-range, testing a key quarterly open level, and retracing 62% of its recent price run-up. In addition, Pratty Crypto warns that the deeper Solana’s price goes into the $130-$150 order block, the less likely it is to hold, potentially leading to more substantial losses. Featured image from DALL-E, chart from TradingView.com
In a recent flare-up on X, notable voices from both the Ethereum and Solana communities clashed over various criticisms directed at the Solana blockchain. Flip Research, a X handle aligned with pro-Ethereum viewpoints, outlined several perceived flaws in SOL’s architecture and operation, raising questions about the blockchain’s reliability, usability, and future potential in institutional settings. […]
Despite growing rumors that the world’s largest asset manager may file a spot Solana ETF (exchange-traded fund) with the US Securities and Exchange Commission (SEC), BlackRock executive Samara Cohen has dismissed the possibility, at least in the near future. BlackRock Pours Cold Water On Solana ETF Hopes In a recent interview with Bloomberg, Samara Cohen, […]
Solana (SOL) is currently one of the high-flyers in the crypto market. The crypto token recently recorded one of the most gains following the market-wide rebound. Crypto analyst Rekt Capital, however, suggested that the crypto token is just getting started, revealing key levels to watch as Solana eyes higher prices. Key Levels To Watch For Solana’s Price In an X (formerly Twitter) post, Rekt Capital highlighted $180 and $202 as key price levels to watch for Solana’s price. The analyst claimed that a successful retest of the $180 price level as new support could continue an upward trend over time for Solana. SOL could rise above $200 in the short term as it moves further to the upside. However, the crypto token would need to break the resistance at $202 as it looks to break its all-time high (ATH) of $260. Related Reading: Will Bitcoin Reach A New All-Time High? Crypto Analyst Reveals Why $90,000 Is Possible Following the recent market-wide rebound, Solana had risen above $180, a three-month high for the crypto token. Although the crypto token has dropped below this price level again, another rise above $180 will help SOL establish that price range as new support and prime it for further moves to the upside. As highlighted by Rekt Capital, the $135 and $122 price levels have already been established as solid support for the crypto token. Rekt Capital’s analysis follows crypto analyst Ali Martinez’s recent prediction that Solana could skyrocket and rise to as high as $1,000. Martinez stated that early signs of a breakout from a bull pennant suggest a potential 900% rally ahead for Solana. Crypto analyst Javon Marks also offered a bullish prediction for Solana, stating that the crypto token will rise to $233 and then $450. He made this prediction based on SOL’s bullish structure, which he noted also recently confirmed a hidden bullish divergence. Marks explained that this divergence could send Solana’s price back above $204 and lead to a price rally of over 40% to $233.8 as prices “hold broken out of a much larger resisting structure.” The analyst also suggested that this bullish divergence will cause Solana’s price to rise to $450. Enough Reasons To Be Bullish On Solana There are enough reasons to be bullish on Solana, especially considering how the crypto token has earned the status of being among the ‘big 3’ alongside Bitcoin and Ethereum in this bull run. Solana’s dominance in this market cycle is one reason market participants anticipate that a Spot Solana ETF will likely be approved next. Solana’s price appears to be reacting to such expectations, with fund issuers VanEck and 21Shares filing to offer Spot Solana ETFs. If they eventually launch, these funds could contribute to more parabolic price gains for SOL, considering the Spot Bitcoin ETFs’ impact on BTC’s price. Related Reading: Dogecoin Falling Wedge Pattern: Crypto Analyst Predicts Breakout To $0.22 The steady rise in Solana’s total value locked (TVL) also paints a bullish picture for the crypto token. Data from DeFiLlama shows that Solana’s TVL has been rising significantly since the start of the year and has continued to hit new highs. The network’s TVL currently stands at $5.21 billion, the third highest among all chains. At the time of writing, Solana is trading at around $173, down over 1% in the last 24 hours, according to data from CoinMarketCap. Featured image created with Dall.E, chart from Tradingview.com
In a move highlighting the growing intersection of traditional finance (TradFi) and blockchain technology, Hamilton Lane, one of the world’s largest asset managers, has announced the launch of a private credit fund on the Solana (SOL) blockchain. The fund, named Senior Credit Opportunities Fund (SCOPE), will now be accessible to investors through the Solana network, according to a recent report by Fortune. Institutional Fund Directly On The Solana Blockchain Hamilton Lane, which has over $290 billion in assets under management, has partnered with Libre, a Web3 protocol developed by Brevan Howard’s WebN Group and Nomura’s crypto firm Laser Digital to facilitate this initiative. Related Reading: Ethereum ETFs Witness Stellar Start As Trading Soars; Analyst Sees ETH’s Price Reaching $8,000 In Q4 According to Fortune, Libre will serve as the “backbone infrastructure,” enabling the issuance and distribution of tokenized real-world assets (RWAs) on-chain. With this, Hamilton Lane aims to expand its distribution channels and reach a broader range of investors, including the “mass affluent” and crypto-native traders. Dr. Avtar Sehra, CEO and founder of Libre, emphasized that Solana’s “low latency and high throughput capabilities” make it an ideal network for tokenization. Interestingly, this move marks a significant milestone for the Solana ecosystem, as it is the first institutional fund to be launched directly on the blockchain, with the potential for more to follow as RWAs have been an increasing investment vehicle for institutional investors to capitalize on crypto technology over the past year. Financial Inclusion Through Tokenization? Hamilton Lane’s foray into blockchain technology is not entirely new, as the firm previously tokenized SCOPE and an equity fund using the digital securities issuance platform Securitize. Victor Jung, Head of Digital Assets at Hamilton Lane, expressed satisfaction with the inflows generated by these efforts. However, he heralded the launch of Solana as a critical step forward for the company, enabling the tokenization of collateralized lending. Jung said: This is for the decentralized finance natives. We believe that this is just a start of a portion of the financial asset class that will be available to a new audience with a different risk return profile. Related Reading: Dogecoin Falling Wedge Pattern: Crypto Analyst Predicts Breakout To $0.22 Similarly, proponents of these initiatives argue that the tokenization of financial assets will modernize and democratize conventional financial markets. BlackRock CEO Larry Fink, for instance, has expressed his belief that the next step in the industry will involve tokenizing every stock and bond, envisioning a future where all financial assets reside on a unified ledger. While tokenized private credit has gained traction, Fortune reports that some challenges remain. Startups like Maple and Centrifuge have faced difficulties selling to crypto investors due to factors such as long lock-up periods and the varying risk appetite of this particular audience. Additionally, some crypto investors prefer higher returns offered by meme coins, which can overshadow the more modest returns from traditional assets over a longer time horizon. At the time of writing, SOL was trading at $173, down nearly 5% in the 24-hour time frame, led by Tuesday’s broader market decline. Featured image from DALL-E, chart from TradingView.com
A crypto analyst has predicted that Solana (SOL) is set to rally by 1,000% this bullish cycle. According to his analysis, SOL is preparing for a mega surge to new all time highs of $1,800. Solana Sets Sight On $1,800 Price Increase In a recent X (formerly Twitter) post, Ali Martinez, a prominent cryptocurrency analyst, expressed bullish sentiment regarding Solana’s future price outlook. According to Martinez, Solana is poised for a significant price surge, potentially reaching an impressive $1,000, marking new all-time highs. Related Reading: Here’s Why The Bitcoin Price Crashed Below $66,000, Taking Shiba Inu And Dogecoin With It The crypto analyst’s optimistic forecast for Solana is rooted in the cryptocurrency’s recent price movements. Sharing a price chart illustrating SOL’s price action from late 2023 to the end of 2024, Martinez predicted a maximum bullish surge to $1,800 for the altcoin. The analyst also based his bullish projections on early signs of an identified technical bull pennant pattern in Solana’s price chart. A bull pennant is a continuation pattern that often signals the extension of continuation of an upward trend after a period of consolidation. For Solana, this unique pattern suggests that SOL may be gearing up for a substantial bullish breakout this year. In accordance with his analysis, Martinez foresees Solana experiencing a whopping 900% rally by the end of 2024. This price surge would signal a major milestone for the cryptocurrency, considering Solana has only been able to rise as high as $259.96 in 2021. While Martinez has maintained a bullish stance on Solana’s price outlook, the analyst also cautioned that his projected surge will not happen instantly. He disclosed that the flagpole for the bull pennant pattern took about 184 days to form, during which Solana climbed from an initial price of $11 to $192. Given this gradual price progression, Martinez revealed that there will be multiple corrections or temporary price dips for SOL along its path to its $1,000 price target. One of the said corrections is expected at the breakout point of $167, suggesting that Solana may drop to this level before it can reach new highs. After this slight correction, SOL is expected to continue on a bullish upward trajectory, potentially reaching $1,000 in due time. SOL Price Analysis Solana has been on a bullish trend over the past month, steadily approaching the $200 price mark. The cryptocurrency has witnessed substantial gains, recording an increase of approximately 14.71% in the last seven days, according to CoinMarketCap. Related Reading: Will Bitcoin Reach A New All-Time High? Crypto Analyst Reveals Why $90,000 Is Possible At the time of writing, SOL price is trading at $177.56, underscoring the cryptocurrency’s strong fundamentals amidst market volatility. In a more recent X post, Martinez disclosed that Solana’s TD sequential is now presenting a buy signal on the hourly chart. According to the indicator, this suggests that it might be a good time to purchase Solana, as the price is expected to increase soon. Featured image created with Dall.E, chart from Tradingview.com
A new method used by fraudsters has emerged, catching Solana (SOL) holders off guard on the Pump.fun platform, leading to significant losses. Going by the pseudonym “Short Form King”, a crypto researcher sheds light on this new trend and exposes the tactics used by these fraudsters. Rising Threat To Solana Holders A recent social media post […]
Solana (SOL), the fifth largest cryptocurrency in the industry, saw a notable resurgence over the weekend, in line with the broader market rally and Bitcoin’s (BTC) rebound towards the $63,000 mark for the first time in over a week. SOL’s price has successfully recovered from the losses of the past few months, surpassing the $150 level and overcoming key resistance walls, coupled with an optimistic statement from Daniel Cheung, co-founder of the hedge fund Syncracy Capital, who believes that SOL is exhibiting similar fractal patterns reminiscent of the third quarter of 2021, potentially leading to explosive gains. More Gains Ahead For SOL In a social media post on Sunday, Cheung expressed his bullish perspective on SOL’s price action as the token closed the past week on a bullish note, also drawing comparisons to the third quarter of 2021, from which SOL’s price began its rise from a low of $27 at the end of July that year, eventually reaching its current all-time high of $259 in November 2021. Cheung also drew parallels to the fourth quarter of 2020, highlighting that in both cases, the most significant returns are just around the corner, suggesting that further price gains are on the cards in the last half of the year, as was the case in 2021. Related Reading: Bitcoin Price Surges Past $63,000: The Key Reasons Cheung further emphasized that Solana is expected to remain a hub for on-chain activity throughout the rest of this market cycle due to its accessibility to retail investors, making it an appealing asset. The potential introduction of a Solana exchange-traded fund (ETF), which is anticipated to have a substantial impact on SOL’s price, coupled with the increasing probability of Trump’s re-election, serves as additional fuel for the Solana ecosystem, Syncracy Capital’s co-founder stated. Solana Market Cap Projection In an interesting observation, Daniel Cheung also stated that he believes the Solana ecosystem can ” likely” reach 50% of Ethereum’s market capitalization this cycle as optimism around the blockchain grows. Currently, Solana boasts a market cap of $71 billion, significantly lower than Ethereum’s $403 billion. Still, according to Cheung’s analysis, if SOL were to reach 50% of Ethereum’s market cap, its market capitalization would reach a staggering $280 billion, triggering an exponential rise in SOL’s price and pushing it to new all-time highs. Related Reading: XRP Price Confirms Bullish Reversal: Crypto Analyst Forecasts ‘God Candles’ Ahead It remains to be seen whether this latter scenario will play out, with expectations of a more favorable regulatory framework in the US, with the potential for new legislation for the industry with a Trump victory in the November election and the potential approval of the anticipated Solana ETF market. Nonetheless, Solana is trading at $152 at the time of writing, up over 6% in the 24-hour time frame and a significant 438% year-to-date. Featured image from DALL-E, chart from TradingView.com
The ongoing frenzy over memecoins created on top blockchains over the past year has found a notable competitor in the Solana-based marketplace Pump.fun, a crypto project reminiscent of the anonymous social media platform on the Ethereum blockchain 4chan. Over One Million Memecoins Created In 7 Months According to a Bloomberg report, since its launch in […]
In an interview with Tony Edwards of Thinking Crypto, Matthew Sigel, Head of Digital Assets Research at VanEck, explained the firm’s decision to file for a spot Solana-based Exchange Traded Fund (ETF) rather than one based on XRP. VanEck, a pioneering investment management firm in the US, has chosen to back Solana due to its […]
The Chicago Board Options Exchange (Cboe), known for trading Bitcoin exchange-traded funds (ETFs) approved earlier this year, has thrown its support behind the spot Solana ETF applications filed by asset managers VanEck and 21Shares. On Monday, the Cboe submitted a request to the US Securities and Exchange Commission (SEC) seeking to list ETFs tied to […]
In the first quarter of the year, Solana-based meme coins have emerged as the frontrunners, surpassing Ethereum’s meme coin ecosystem and artificial intelligence (AI) tokens, according to a recent report by market data platform CoinMarketCap. This shift in popularity signifies a change in dynamics within the cryptocurrency market, with meme coins gaining traction and challenging previously dominant narratives such as smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs). Solana Ecosystem Dominates Growth Chart The CoinMarketCap report highlights that the Solana ecosystem has consistently topped the growth chart for the past eight months, with over 20 new tokens introduced in Q2 alone. Ethereum’s ecosystem followed closely behind with 14 new tokens, while Derivatives and Stablecoins witnessed relatively lesser growth with 5 and 4 new tokens, respectively. This surge in Solana-based token offerings indicates a growing interest in the network and its potential. Related Reading: Toncoin Price Inches Closer To All-Time High – Will TON Hit $8 This Week? Solana’s meme coin ecosystem, in particular, has gained significant momentum in price performance and popularity since October 2023. Although Ethereum remains the dominant blockchain, Solana’s growing prominence suggests a noteworthy trend in the crypto space. Interestingly, SOL memes have significantly outperformed ETH memes, delivering an average return of 8,469% compared to 962% for Ethereum, as seen in the chart below. As “speculative capital” from other chains rushed into Solana, attracted by the explosive rallies of tokens like dogwifhat (WIF) and Bonk Inu (BONK), more meme coins experienced price surges, attracting additional attention and capital. The top winners in the meme coin space include the cat characters MEW, POPCAT, and Book of Meme (MEME). These tokens have outperformed even the most popular ones like WIF, BONK, Ethereum’s Pepe coin (PEPE), and Shiba Inu (SHIB). Notably, political memes also emerged as a popular subcategory, with the leading MAGA (TRUMP) meme coin gaining over 5100% year-to-date, largely due to vocal support for crypto from former President Donald Trump and the acceptance of crypto for campaign donations. Ethereum Tops Fee Income Rankings Despite Solana’s significant gains, Ethereum continues to dominate the Layer 1 (L1) smart contracts market, representing 62.11% of the major L1s. The report notes that Ethereum’s recent milestone was propelled by the SEC’s approval of Ethereum Spot ETFs. However, Binance Smart Chain (BNB) and Solana have also gained traction, adding $42 billion and $18 billion to their market share among L1 networks. Solana currently leads with over 1.6 million active daily addresses, followed by BNB with 1 million active addresses. Related Reading: Avalanche On The Verge: Will AVAX Break Out And Reach $65? In Q2, Ethereum experienced record low gas fees, reaching levels not seen since 2020 due to the growing adoption of Layer 2 solutions and the market excitement surrounding Solana-based meme coins. Despite representing 62% of the market cap among major L1s, Ethereum accounted for 70% of the daily revenue, generating approximately $2.7 million. Solana ranked second with around $900,000 in daily revenue. According to Lookonchain, Ethereum topped the fee income rankings in the past year with $2.728 billion, followed by Bitcoin with $1.302 billion. Other notable networks include Tron ($459.39 million), Solana ($241.29 million), Binance Smart Chain ($176.56 million), Avalanche ($68.83 million), zkSync Era ($59.77 million), Optimism ($40.4 million), and Polygon ($23.91 million). Despite both platforms experiencing success in various financial metrics and growth charts, Solana’s native token, SOL, has significantly outperformed Ethereum’s ETH token. As of the current trading price, SOL is valued at $143.25, showcasing a year-to-date growth of 650%. ETH has seen a more modest surge of 68% during the same time frame, currently trading at $3,310. Featured image from DALL-E, chart from TradingView.com
Leading asset manager and Bitcoin Exchange Traded Fund (ETF) issuer VanEck has officially filed a Spot Solana ETF with the US Securities and Exchange Commission (SEC), fueling bold growth predictions for the Solana ecosystem. Market-making firm GSR Markets recently released a report shedding light on the potential impact of a Solana ETF and highlighting the platform’s emergence as part of the “Big Three” in the crypto space. Speculation Of A Solana ETF Approval GSR’s report highlights Solana’s rapid rise within the cryptocurrency industry, positioning it as a major player alongside Bitcoin and Ethereum. With the Bitcoin ETF market already approved and Ethereum about to launch a spot ETF in the US, GSR predicts that it’s only a matter of time before Solana follows suit, potentially making the biggest impact. Related Reading: Bitcoin Miner Selling Cools Off – Is This The Breakout Moment? GSR’s analysis highlights three key technological advancements that set Solana apart from its competitors. Firstly, Solana’s proof-of-history enables validators to produce blocks efficiently, resulting in remarkable speed and scalability advantages. Second, Solana’s parallel transaction processing enables increased throughput and takes advantage of improvements in computing speed. Finally, the company said Solana’s architecture positions it to solve the “blockchain trilemma” by achieving global state synchronization at “unprecedented speeds” as hardware and bandwidth costs decline. In addition, GSR’s report addresses the likelihood of Solana securing a spot digital asset ETF. While the current regulatory framework requires a federally regulated futures market and a futures-based ETF before a spot product can be considered, GSR believes that the potential for change shouldn’t be underestimated. The company also claims bipartisan support for the crypto industry, and shifting attitudes among lawmakers indicate a more favorable environment for digital assets. A Trump administration and a liberal SEC commissioner could further pave the way for the launch of spot digital asset ETFs, creating opportunities for Solana and other cryptocurrencies, the report said. Projected Impact On SOL’s Price GSR emphasizes the importance of decentralization and potential demand in determining the next spot digital asset ETF. Factors such as permissionless participation, developmental control, token allocation, and stake characteristics contribute to a blockchain’s level of decentralization. Meanwhile, as indicated by metrics like market cap, potential demand serves as a crucial factor for issuers when assessing future inflows. GSR combines decentralization and demand scores to create an ETF Possibility score, which highlights Ethereum and Solana as leading contenders for the next spot in digital asset ETF. Related Reading: Dogecoin To The Moon? Crypto Analyst Predicts 440% Price Increase Drawing parallels to the effect of spot Bitcoin ETFs on Bitcoin’s price, GSR estimates the potential impact of a Solana ETF on SOL. Adjusting for Solana’s smaller market cap relative to Bitcoin, GSR predicts a 1.4x to 8.9x increase in SOL’s price under different scenarios. However, the report acknowledges that the impact could be even higher, considering SOL’s active usage in staking and decentralized applications. In the event of a spot ETF approval, GSR suggests that the potential upside for SOL presents a significant opportunity in the market. As investor excitement over the development became apparent, SOL’s price reached a weekly high of $151 on Thursday, but in the past few hours, SOL has dropped nearly 4% to a current trading price of $143. Featured image from DALL-E, chart from TradingView.com
The Solana Foundation recently launched two new tools to facilitate the integration of Web3 capabilities into mainstream platforms and the adoption of blockchain. In a series of social media posts, the foundation launched “Actions” and “Blockchain Links” (Blinks), which, according to the announcement, is a step forward in allowing developers to build blockchain functionality into websites and social media platforms. Alongside these developments, the Solana ecosystem continues to expand its tooling and services, with notable advancements in transaction cost reduction and network efficiency. Seamless Web3 Transactions? Actions, one of the newly introduced tools, allows users to engage in Web3-native transactions, including asset transfers, non-fungible token (NFT) interactions, voting, betting, and tipping content creators. Complementing Actions, Blinks allows developers to format any Action into a shareable link, transforming websites and social media platforms into practical entry points for blockchain interactions. These tools reportedly provide an important bridge between traditional web applications and decentralized finance (DeFi), facilitating the integration of blockchain capabilities into everyday digital experiences. Related Reading: Crypto Research Firm Says Bitcoin Crash Below $60,000 May Not Be The End, Here’s Why In addition, to optimize transaction costs, Light Protocol and Helius Labs recently launched a testnet for ZK Compression on the Solana network. ZK Compression uses zero-knowledge proofs and call data to reduce the cost of transactions on the network. By minimizing the amount of on-chain data stored, ZK Compression enables considerable fee savings by reducing the computational demand of Solana transactions. Mert Mumtaz, CEO of Helius Labs, estimates that ZK Compression can cut the cost of airdropping tokens to one million users on Solana from $260,000 to just $50, providing a compelling, cost-efficient solution. Mumtaz further stated: example cost difference: take an airdrop to 1,000,000 users. This today would cost over $260,000 for state alone. Now, it’s $50 — 5,200x cheaper. But a token account is just one example of this — *everything* on Solana is an account, meaning everything can be scaled. ZK Compression On Solana While ZK Compression has garnered praise for its cost-saving potential, critics from the Ethereum community argue that it functions as a Layer 2 (L2) solution, contrary to Solana’s anti-Layer 2 ethos. Some skeptics contend that ZK Compression essentially operates as an L2 feature or a validity-based rollup. Adam Cochran, VP of Operations at SBT Partners, stated that ZK Compression is an L2 solution. In response, Anatoly Yakovenko, Solana’s co-founder, highlighted that ZK Compression addresses many issues commonly associated with Ethereum-based L2 solutions. Yakovenko emphasized its independence from security council multisigs, chain ID switches, governance tokens, and external sequencers while ensuring Solana validators receive transaction fees. SOL Price Analysis SOL experienced a temporary dip on Monday, with its price reaching a low of $122. However, crypto analyst “Skew A” has examined SOL’s 4-hour chart and pointed out its rebound, surpassing the recovery of other large tokens. According to “Skew A,” specific factors need to be considered when assessing SOL’s potential uptrend and price recovery. Firstly, SOL’s price movement above the 1-day 200MA (Moving Average) is a positive signal. This suggests the token’s value is trending above the average price over the past 200 days, indicating a potentially bullish sentiment. Furthermore, confirmation of SOL’s upward trend would involve observing higher highs (HH) above $150. Related Reading: 10x Your Crypto Portfolio: Top Analyst Highlights 4 Altcoins To Buy In the past 24 hours, SOL has notably recovered with a 9% increase, bringing its current trading price to $138. This upward movement positions the token favorably as it aims to surpass key resistance levels on its path toward consolidating above the significant milestone of $200. To reach the $200 mark, SOL must overcome and successfully breach major resistance walls at $150, $162, $174, and $186. These levels represent significant hurdles that must be surpassed before potentially breaking through the crucial $200 threshold. It remains to be seen whether the ongoing momentum and positive developments within the Solana ecosystem will sustain SOL’s current recovery and enable it to retest the higher price levels achieved in recent months. Featured image from DALL-E, chart from TradingView.com
The Solana bearish price action might be coming to a close, as many cryptocurrencies have started to show mixed price action in the past 24 hours. Dialing the price action further back shows Solana has been mostly bearish and has been on a price decline since the beginning of the month. Notably, the crypto recently reached a 30-day low of $123.96, representing a 29% decline from a monthly high of $174.65. However, some proponents remain undeterred and are still looking forward to a bullish Solana on the long run. Particularly, an interesting prediction from crypto analyst Crypto Patel puts the price of Solana rising to $1,000 in the long term. Solana To $1000? Crypto Patel, mostly known for his Bitcoin takes, recently dropped a brief analysis on social media platform X regarding Solana’s price trajectory. According to his Solana/TetherUS 1 week timeframe chart, Solana’s price formation on the long-term seems to lead up to a surge towards $1,000. Notably, the chart shows the formation of a giant cup and handle pattern, which is generally considered a bullish pattern. Related Reading: Analysts Battle Over Cardano’s Next Move: 12,000% Rally Or 50% Crash? Solana has been on a U-formation since 2022, with a recent six-month surge since October 2023 completing the other side of the U cup. However, the pattern shows a prevailing neck line resistance around SOL’s current all-time high of $259, leading to the start of the handle pattern. According to the technical analysis, this handle pattern is expected to be completed sometime around late 2025. Following its completion, Solana will have the opportunity to break through this neckline resistance at some point in 2026, which would initiate a surge to new all-time highs. The first price target is around $430, and the second is just above $1,000, representing gains of 220% and 640%, respectively, from the current price levels. As explained above, the analyst’s technical analysis is more of a long-term outlook than on a short-term price prediction. This serves more as a strategic roadmap for the next few years. Related Reading: SkyBridge Capital’s Scaramucci Says Bitcoin Will Reach $250,000 Is This US Presidential Candidate Wins It’s important to note that while Crypto Patel’s final SOL price target might be ultra-bullish, the path to attaining it looks very tough. Surprisingly, the analysis suggests that Solana could fall to as low as $46 during the formation of the handle pattern, a price that might not resonate well with Solana bulls. At the time of writing, Solana is trading at $136 and is 9% in the past 24 hours as the bulls look to undo a month long price decline. According to price history, investors can look forward to Solana kickstarting a bullish price action in July. This is because Solana has registered price increases in July for the past six years. Featured image created with Dall.E, chart from Tradingview.com
With the Bitcoin price drop from the $70,000 level to below $64,000, meme coins have understandably suffered as a direct result of this. During this time, meme coins, both large and small, have seen their prices drop significantly, raising concerns about whether the meme coin summer is over. However, going by previous crashes, there may […]
On Thursday, 3iQ Digital Asset Management announced the filing of a preliminary prospectus for The Solana Fund (QSOL) with securities regulatory authorities across Canada, excluding Quebec. If approved, QSOL will become the first Solana (SOL) exchange-traded product (ETP) listed in North America, trading on the Toronto Stock Exchange (TSX) under the ticker “QSOL”. First Solana […]
Arthur Hayes, co-founder of crypto exchange BitMEX, has predicted that the blockchain Aptos (APT) is poised to surpass Solana (SOL) in prominence and utility in the race for the second largest Layer 1 (L1) blockchain behind Ethereum within the next two to three years. Hayes conveyed his thoughts during a detailed interview with macro analyst Raoul Pal. Aptos Could Overtake Solana Hayes indicated that the potential for Aptos to outperform Solana and ascend as the second-ranking L1 protocol after Ethereum is significant, but did not delve into the specific catalysts behind his assertion during the conversation. He promised a more detailed exposition of his views in September. The emergence of Solana in March 2020 marked a significant milestone in the blockchain landscape. Solana was heralded as a solution to several limitations of Ethereum, particularly concerning scalability, speed, and cost-efficiency. These attributes were crucial as the Ethereum network grappled with severe congestion issues during the DeFi boom, prompting the search for viable alternatives. Related Reading: Analyst Calls Buy Signal As Solana Hits Key Support At $141 Solana’s ascent in the crypto hierarchy was notably accelerated with the launch of the memecoins BONK in December 2022 and dogwifhat (WIF) in November 2023, both pivotal moments that marked the first major departure of memecoin activities from Ethereum’s ecosystem. Both memecoins not only boosted Solana’s visibility but also attracted an array of memecoins and innovative DeFi platforms, drawn by lower transaction costs. However, similar to Ethereum, Solana faced its own challenges at the beginning of the year with network congestion as its popularity surged, demonstrating the persistent scalability issues within current blockchain infrastructures. Aptos, on the other hand, has maintained a record of zero downtime since its inception, positioning it as a robust and reliable alternative within the digital currency ecosystem. Its foundation rests on the novel smart contract programming language “Move,” developed by engineers formerly associated with Meta Platforms Inc.’s Diem project. Related Reading: Solana Whale Shakes Market With $372 Million Transfer, Where Are The Coins Headed? Although Diem was ultimately shelved, the expertise and technological advancements have been redirected into Aptos, emphasizing its suitability for commercial use and potential for widespread adoption. However, Aptos has not yet been widely adapted. The blockchain currently has neither a popular DeFi ecosystem nor any major memecoins. APT Price Analysis This is reflected in Aptos’s market performance. Currently, Aptos (APT) has retreated 63% from its January 2023 high of $20.39, trading at $7.50 after experiencing a significant downtrend from its March peak of $19.48. The decline has taken APT below the 0.236 Fibonacci retracement at $8.39. The cryptocurrency’s trajectory has also seen it falter below the 50-week Exponential Moving Average (EMA), now at $9.25, which has emerged as a major resistance level. APT has faced multiple rejections at this threshold, underscoring its importance for any potential reversal to bullish momentum. Moreover, maintaining a position above the year’s lowest price of $7.39 is critical to stave off further losses. Featured image from YouTube, chart from TradingView.com
Certain on-chain indicators paint a bullish picture for Solana (SOL), suggesting this may be an excellent time to purchase the crypto token. This aligns with Solana’s price movement on the chart, with technical analysts predicting that an upward trend might be on the horizon. Solana Enjoying Greater Adoption Data from the market Intelligence platform IntoTheBlock shows that the number of daily addresses on the Solana network has been growing at an impressive rate. On June 11, over 1 million new addresses transacted on the Solana network. This development is significant as SOL could enjoy future price surges as more new users continue to trade on the network. Related Reading: Famous Analyst Dave The Wave Says Bitcoin Still Has Wiggle Room, Sets $300,000 Target The massive growth enjoyed by the Solana network has also translated to greater trading volume on the network, which is also bullish for the crypto token. Data from DappRadar shows that there has been a 62% increase in transaction volume on the Solana chain in the last 24 hours, with over 8.83 million transactions processed during this period. Interstingly, Solana stands tall in this metric, as no other chain has processed this many transactions during this period. Solana has also processed more transactions than every other chain in the last seven days, with over 59.55 million transactions processed within this timeframe. The growing interest in SOL has been partly thanks to the meme coin ecosystem on the network. Solana has become the go-to platform for traders looking to make massive profits from meme coins, which have so far been the best-performing crypto assets in this bull run. Solana’s reputation as the home for meme coins has even attracted celebrities like Australian rapper Iggy Azalea, Caitlyn Jenner, and Andrew Tate to the network. Bearing this in mind, it only seems like a matter of time before Solana’s price reacts positively to its network growth and ever-increasing network activity. Time To Buy SOL? Crypto analyst Altcoin Sherpa suggested that now might be a good time to buy Solana ahead of the meteoric price rally, which it could enjoy soon enough. The analyst said he expects “bigger things” for SOL later this year. For now, he expects Solana to keep chopping between $185 and $120 and just continue to witness a “prolonged period of consolidation.” Related Reading: Bitcoin Price Prediction: Major Analysts Say BTC Is Headed For 6-Digit ATH This period of consolidation is usually a good time for investors to accumulate the crypto token, considering that coins typically enjoy a parabolic uptrend after consolidating for a while. Meanwhile, Altcoin Sherpa claimed that this period of consolidation is healthy for Solana, given the huge run it has already had, rising to a yearly high of $209 on March 18. As to how Solana can rise, Altcoin Sherpa previously predicted that the crypto token will rise above $500 this year.
Peer-to-peer payments company and stablecoin (USDC) issuer Circle has announced its integration with the Solana (SOL) blockchain, bringing several important new features to its Web3 services. According to Wednesday’s announcement, the strategic move will enable Circle to offer programmable wallets and gas stations and allow developers and businesses to build and launch on-chain applications. Advantages […]
A crypto pundit has declared that Dogecoin (DOGE) and Solana (SOL) have reached their “make it or break it levels.” This assessment is set to generate a wave of optimism as DOGE and SOL could be getting ready for a rebound soon. Dogecoin And Solana At Make It Or Break It Point A Crypto analyst […]
Despite the relative tepid movement in the crypto market since Bitcoin hit a new all-time high (ATH) in March, Bitcoin, Ethereum, and Solana have continued to top traditional assets, including Gold. This was highlighted in a recent report that showed how crypto assets have provided the best returns for a while now. Bitcoin, Ethereum, And Solana Outperform Traditional Assets Raoul Pal, Co-Founder of Exponential Age Asset Management (EXPAAM), shared the crypto investment firm’s latest monthly update, showing annualized returns on all major assets. Related Reading: Dogecoin Social Sentiment Turns Bearish And Drops To March Levels, What This Means For Price Bitcoin, Ethereum, and Solana have topped traditional assets with annualized returns of 141%, 152%, and 224%, respectively. For context, NDX, the best major traditional asset, boasts an annualized return of 17%. Thanks to this, these crypto assets have been the best-performing assets in 11 of the last 14 years. These digital assets also look on course to outperform traditional assets again this year, as they boast higher year-to-date (YTD) gains. Data from CoinMarketCap shows that Bitcoin, Ethereum, and Solana currently have YTD gains of over 67%, 66% and 70%, respectively. On the other hand, Gold, the best-performing non-crypto asset this year, has a YTD gain of 13%. The NDX boasts a YTD gain of 10%, while the SPY has recorded a YTD gain of 11%. Interestingly, while the volatility of crypto assets has been criticized at times, this has largely contributed to why they have continued outperforming traditional assets. The Director of Global Macro at Fidelity Investments, Jurrien Timmer, previously highlighted how Bitcoin has continued to record the best risk-reward since 2020. He also alluded to Bitcoin’s high volatility, stating that Bitcoin’s huge drawdowns have also come with large gains. The same can also said about crypto tokens, especially considering that a token like Solana, which dropped to as low as $10 in late 2022, is now trading above $170. More Gains Ahead For BTC, ETH, SOL Bitcoin, Ethereum, and Solana are expected to record more YTD gains as the year progresses, given that the crypto market is currently in a bull run. Recent developments in the crypto market also paint a bullish outlook for these crypto tokens. One is the increased demand for the Spot Bitcoin ETFs. Data from Farside Investors showed that these funds recorded net inflows of $886.6 million on June 4, their best day since March. Related Reading: Crypto Pundit Shares “Inevitable” Prices For Bitcoin And 5 Altcoins Meanwhile, the Spot Ethereum ETFs are expected to begin trading by July. Crypto analysts like Michael van de Poppe predict these funds could spark a significant rally for Ethereum and other altcoins. ‘Solana Summer’ also looks to be on the horizon, with the crypto token showing signs of imminent parabolic upward trend. At the time of writing, Bitcoin has broken above the $70,000 resistance level and is trading at around $71,000, up almost 3% in the last 24 hours, according to data from CoinMarketCap. Featured image created with Dall.E, chart from Tradingview.com
In a technical analysis, renowned crypto analyst Gert van Lagen presented an extremely bearish outlook for Solana (SOL), suggesting that its price is poised for a substantial downside move. Van Lagen’s analysis is underpinned by the widely acclaimed Elliott Wave Theory, a methodology that seeks to identify recurring patterns and cycles in market price movements. Why The Solana Price Could Crash At the core of Van Lagen’s analysis lies a dissection of Solana’s price action over the past few years. According to his assessment, the year 2021 marked the culmination of a clean Elliott Wave trend for Solana, signaling the end of a bullish cycle. This uptrend is characterized by a specific pattern of five waves, with the final wave acting as the climactic move before a reversal. Moving into 2022, Van Lagen’s analysis identifies the unfolding of the A-wave down, which he classifies as the first leg of a prolonged bear market. Crucially, this A-wave down exhibits a distinct pattern of five subwaves, aligning with the principles of the Elliott Wave Theory. The presence of these subwaves is a key indicator that the downtrend is likely to persist, as they are believed to reflect the underlying market sentiment and psychology. Related Reading: Solana-Based GameStop Tribute Token (GME) Soars 300% Following Roaring Kitty’s Return In 2023, Van Lagen observed the formation of the B-wave, a corrective rally within the broader bear market context. Just like the A-wave, this B-wave is composed of five subwaves, adhering to the Elliott Wave Pattern for corrective movements. The identification of this B-wave is crucial, as it suggests that the overall downtrend has not yet been fully exhausted and that further downside momentum may be forthcoming. As the analysis shifts to 2024, Van Lagen’s expectation is for the C-wave to materialize. In the Elliott Wave Framework, the C-wave is the final leg of the broader bear market cycle, and its occurrence would potentially mark the completion of the ongoing downtrend for Solana. Notably, Van Lagen’s analysis also highlights the presence of bearish divergence on the weekly Relative Strength Index (RSI), a widely used momentum oscillator. Bearish divergence occurs when the price makes higher highs while the RSI fails to confirm these highs, potentially signaling a forthcoming trend reversal or a loss of bullish momentum. Related Reading: Solana Remains Institutional Investors’ Favorite, YTD Flows Ramp Up To $29 Milion Van Lagen posted via X: “I’m short on SOL –> ready for the next leg down. 2021: Finalized a clean Elliottwave up; 2022: A-wave down of prolonged bear market