According to an analysis by trading expert TradingShot, the price of the decentralized finance (DeFi) platform Solana (SOL) is likely to skyrocket to over $4,000.
In a TradingView post on June 14, this forecast hinges on examining Solana’s price movements, suggesting that the cryptocurrency’s bullish trend remains robust.
The expert acknowledged that Solana has been undergoing a correction phase since reaching a peak in March 2024. This adjustment follows a substantial rally throughout 2023, necessitating a technical realignment.
A pivotal aspect of this analysis is the one-week Relative Strength Index (RSI), which peaked in March, forming a double top similar to the one observed in August 2020. The RSI bottomed out after dipping into bearish territory at that time, stabilizing around 41.50.
However, this correction appears less severe now, with the one-week moving average (MA50) consistently providing support since a bullish breakout in late September 2023.
TradingShot emphasized the significance of the RSI’s bull cycle buy zone as an opportune entry point for investors, suggesting that Solana’s price has not yet reached its lowest level. Currently, Solana is positioned within the Mayer Multiple Bands, a range that tracks price fluctuations relative to historical trends. March’s rejection occurred at the bottom within these bands, a detail likely to influence future price behavior.
The path to $4,000
Regarding the next SOL price trajectory, the analysts explored Solana’s historical performance. The cryptocurrency experienced a 1,250% rise during the previous cycle from the inception of the current long-term Fibonacci channel up. As per the analyst, if Solana replicates this growth from the recent bear cycle bottom, it will peak slightly above $4,000.
Notably, Solana has already surged by 2,500% up to its March high. Should the current cycle reach $4,000, the increase from March’s high would be approximately 1,900%. This is less dramatic than the rise from December 2022 to March 2024.
If Solana were to reach a valuation of $4,000, it would mark a significant achievement for the network. This milestone would position Solana in close proximity to established peers like Ethereum (ETH).
To put this into perspective, Solana’s market cap would be approximately $1.825 trillion. Compared to the current cryptocurrency market, this capitalization surpasses Bitcoin’s (BTC), which stands at $1.3 trillion at the time of writing.
However, it is worth noting that Bitcoin’s price movement often dictates the market’s trajectory, so by the time Solana hits $4,000, Bitcoin’s value is likely to be higher.
In the traditional finance space, a market cap of $1.825 trillion would likely rank Solana sixth, behind giants like Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN), assuming these companies experience minimal growth.
Solana reaches critical support level for breakout
In the short term, crypto analyst Ali Martinez noted in a June 15 X post that Solana has reached a critical support level at $141, as indicated by the TD Sequential buy signal. This development suggests a potential rebound for the cryptocurrency.
According to Martinez, if this support holds, Solana could experience a recovery lasting from one to four daily candlesticks.
Meanwhile, as of press time, Solana was trading at $145.66, gaining about 1.2% in the last 24 hours. The decentralized finance token has corrected by almost 9% on the weekly chart.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
