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Solana Poised For Major Upside: Analyst Predicts 47% Surge After Price Breakout

With the recent approval of Bitcoin exchange-traded funds (ETFs) injecting new inflows and igniting a sense of bullish sentiment in the market, Solana (SOL) is emerging as one of the top gainers in the past 24 hours. 

The cryptocurrency has experienced a 4.5% surge, trading at $99, aiming to reclaim the significant $100 milestone lost during a recent deep correction.

Solana Bulls Targeting $150-$165 Price Range 

Solana, holding the fifth position among cryptocurrencies by market capitalization, could undergo a substantial price surge if the current upward momentum continues and successfully breaks out of its downtrend correction.

Renowned crypto analyst Ali Martinez suggests that Solana is breaking out from a bullish flag pattern formed on the 4-hour chart. 

Solana

A sustained close above the $106 mark can trigger a remarkable 47% rally, propelling SOL towards the price range of $150 to $165.

However, at the time of writing, Solana has retraced below the upper boundary of the bull flag formation, which is positioned at $103. 

Nevertheless, a breakout could be imminent if the growing interest in the token persists alongside a sustained bullish momentum. This scenario would position SOL to regain its previously lost highs and set its course toward Ali Martinez’s price targets within $150 to $165.

SOL Market Cap Quadruples, DeFi, And NFT Metrics Skyrocket

Solana has showcased remarkable performance during the fourth quarter of 2023, positioning itself as a leader in the crypto market rally, according to a recent report by Messari. 

One of the key achievements for Solana in Q4 was its notable increase in market capitalization. SOL concluded the year with a market cap of $43.8 billion, marking a staggering 423% quarter-on-quarter (QoQ) growth and an astonishing 1,106% year-on-year (YoY) increase. 

Solana

This growth propelled SOL to surpass notable tokens such as ADA, USDC, and XRP in market cap, securing the 5th position among all tokens. It is worth noting that Solana began 2023 ranked 17th in market capitalization, highlighting its exponential rise in prominence.

The Solana network’s decentralized finance (DeFi) Total Value Locked (TVL) also experienced significant growth. Solana’s DeFi TVL increased by 303% QoQ and an impressive 505% YoY, reaching $1.5 billion. 

The report also highlights the notable increase in DeFi volume on the Solana network. The average daily spot DEX volume experienced a staggering 1,116% QoQ growth, reaching $359 million. 

Among the contributors to this growth, Orca accounted for 45% of the Q4 volumes, followed by Raydium with a 29% market share. Phoenix, a fully on-chain central limit order book, stood out by averaging over 9% of the DEX volume market share.

Solana’s influence in the NFT space also saw substantial growth during Q4. The average daily NFT volume increased by 356% QoQ, reaching $4.8 million. Solana’s market share of NFT volume, excluding Bitcoin, grew from 9% to 26% QoQ, demonstrating its increasing significance in the NFT market.

Solana

Featured image from Shutterstock, chart from TradingView.com

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Solana Users Face Mounting Threat As Drainer Attacks Surge, SOL Price Plummets 13%

As the price of Solana (SOL) has skyrocketed by an astounding 722% year-to-date, the network’s rapid growth has attracted both attention and challenges. 

Not only has the native token gained significant value, but the use of Solana-based meme coins such as Bonk Inu (BONK), which has grown over 854% year-to-date, and decentralized applications (dApps) have skyrocketed. Unfortunately, this increased popularity has led to increased attacks against the so-called “Ethereum Killer.”

Malicious Solana dApps Exploited

Web3 security firm Blockaid has recently observed a concerning trend of users falling victim to attacks by Solana-based drainers. 

One notable example is the website lessfeesndgas[.]org, which succeeded in stealing tokens from the Solana Program Library (SPL), which is designed to support the creation and management of tokens on Solana and SOL worth hundreds of thousands of dollars.

Interestingly, according to the company’s post on X (formerly Twitter), Blockaid’s secure wallets remained immune to these attacks from the moment the site went live, preventing any connections from being made.

Solana

The sophistication of these drainers is noteworthy, according to the firm, as they can fool the simulations used by Solana wallets, causing users to sign malicious transactions unknowingly. Web3 security firm Blockaid further stated:

As Solana continues to gain popularity, drainer groups are increasingly moving towards it, as indicated by the growing number of malicious Solana dApps detected by Blockaid.

Solana’s rapid ascent as a high-performance blockchain platform has drawn admiration and scrutiny. Its ability to process transactions quickly and at a lower cost than Ethereum has positioned it as a strong competitor. 

However, the network’s success has also made it an attractive target for malicious actors seeking to exploit vulnerabilities and capitalize on its growing user base.

Still, this is not the only bad news for Solana in the past few hours, as its native token has been experiencing a continuous sharp drop in price, leading to the belief that its uptrend and bull run may be over despite the possibility of a rebound in the overall crypto market.

Stablecoin Surge And NFT Sales Fail To Prevent SOL’s Price Drop

In just five hours, the price of SOL experienced a significant 13% drop, hitting a low of $85 on Wednesday. This decline occurred despite notable growth in stablecoin transfers, which saw a rise of over 45% this week. 

Solana

Additionally, on Tuesday, SOL surpassed Ethereum in monthly trading volume for non-fungible token (NFT) sales, marking a milestone for the network.

SOL is the fifth-largest cryptocurrency, boasting a market capitalization of $42.6 billion. It holds a $12 billion lead over XRP and trails just behind Binance Coin (BNB) by a mere $6 billion.

The trajectory of SOL’s price remains uncertain as investors await signs of a potential bullish momentum resurgence.

Building a more secure framework for decentralized applications (dApps) could be pivotal in restoring investor confidence and attracting additional capital to the ecosystem, potentially propelling SOL to reclaim its one-year high of $126, previously achieved on December 25.

Solana

Featured image from Shutterstock, chart from TradingView.com 

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Solana Saga Orders Scrapped As $30 Million BONK Token Package Overshadows Device’s Value

Solana (SOL) and its associated meme coin, Bonk (BONK), have witnessed remarkable surges in value, with SOL recording gains of over 71% and Bonk experiencing an astonishing 342% increase over the past 30 days. 

The positive growth within the Solana ecosystem has resulted in a surge in demand for the flagship mobile device, Solana Saga. However, the Solana Mobile team recently addressed challenges in meeting the “overwhelming demand” and explained order cancellations and inventory management issues.

Solana Mobile Faces Inventory Mishap

Over the past month, SOL has seen a significant uptrend, inching closer to the $100 mark, a level not reached since April 2022. Additionally, Bonk has experienced an extraordinary surge reaching a trading value of $0.00001896.

Solana

Given these developments and the social buzz within the blockchain and its mobile device, the Solana Mobile team confirmed that their limited inventory of 20,000 devices worldwide has sold out, with both the US and EU markets experiencing high demand.

According to a recent statement on X (formerly Twitter), in the process of fulfilling orders, the Solana Mobile team encountered an “inventory management issue” with their third-party distributor. This issue resulted in an inaccurate representation of the available inventory.

Consequently, the team was unable to fulfill orders placed after the inventory was depleted. Additionally, orders suspected of suspicious activity, such as excessive device orders or payment risks, were flagged and subsequently canceled. 

According to the announcement, the objective behind these measures is to ensure that as many users as possible can enjoy the Solana Saga mobile device.

Customers affected by the order cancellations have been promptly notified, and they will receive refunds within the coming days. 

Solana’s DEX Volume Overtakes Ethereum And Arbitrum

The Solana ecosystem, together with its native token SOL, has recently achieved significant milestones. Notably, Solana’s 24-hour decentralized exchange (DEX) volume has exceeded that of Ethereum (ETH) and Arbitrum (ARB) combined, surpassing the $2 billion mark. 

Additionally, Solana has emerged as the third-largest altcoin (only behind BNB) by market capitalization. These achievements reflect the growing popularity and success of Solana within the cryptocurrency market.

According to Token Terminal data, SOL’s market cap (circulating) stands at $41.05 billion, reflecting a remarkable increase of 46.98%, flipping XRP’s market cap by over $7 billion.  

The revenue generated has also witnessed substantial growth, with an 80.43% increase to $2.39 million. Furthermore, SOL’s fully diluted market cap has reached $54.31 billion, showcasing a significant rise of 45.60%.

The revenue generated on the Solana platform, when annualized, amounts to an impressive $29.13 million, signifying a substantial increase of 94.75%. 

Examining SOL’s financial ratios, the price-to-fully diluted ratio stands at 796.78x, indicating the market’s high expectations for future growth. However, this ratio has experienced a recent decrease of 19.3%. 

Solana

Featured image from Shutterstock, chart from TradingView.com

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Solana Ascending Triangle Formation Anticipates Price Surge, $90 Target In Sight

Since October 2023, Solana (SOL), often called the Ethereum killer, has seen significant network and price action growth. 

However, everything points out that the most notable growth in recent months has been in SOL’s price, which has surged over 368% year-to-date, taking the token from a low of $7.95 in 2022 to a now staggering $64.20, with an annual high of $68.

But are these numbers reflective of fundamental growth, or are there discrepancies between price action and network progress? 

Growth In Network And Price Action Fuel Optimism

According to Ally Zach, a research analyst at Messari, SOL has experienced significant growth since its December 2022 lows. The price of SOL has increased by over six times, while active addresses and Total Value Locked (TVL) have doubled. 

Initially positioned as a decentralized finance (DeFi) hub, Solana has diversified over time, introducing new infrastructure and tools, such as compressed non-fungible tokens (NFTs), which have led to the emergence of new consumer applications on the platform.

According to Zach’s latest report, throughout most of 2023, consumer apps served as the primary entry point for first-time users on Solana. However, early November’s “breakpoint event” reignited Solana’s DeFi sector. 

A series of airdrop announcements for major projects in the ecosystem, particularly the airdrop by JupiterExchange, propelled the DeFi sector to the forefront. These airdrops, coupled with new token launches, have boosted market caps and decentralized exchange (DEX) TVL, attracting users through the trading potential of these tokens.

Notably, Solana’s new DEX users exhibit different behavioral patterns compared to airdrop farmers on other networks. Instead of high-frequency, low-volume transactions involving stablecoins, these users actively trade small and mid-cap tokens and spend more per swap. 

This suggests a more sustained and engaged user base, moving away from transient farming practices. DEXs play a crucial role in the decentralized finance ecosystem, deriving strength from the diversity and robustness of the surrounding apps and tokens.

Ally Zach’s analysis suggests that Solana’s newest user base, including newcomers and veterans, is shifting away from typical airdrop farming behaviors. 

This shift indicates the potential for these users to become long-term contributors, strengthening the sustainability of the Solana ecosystem.

Potential Solana Rally To $90 On The Horizon

In addition to the potential long-term growth of the Solana network, the price of SOL is not far behind. Prominent crypto analyst Ali Martinez has identified an intriguing price pattern for SOL that indicates the potential for further gains soon. 

Martinez highlights an ascending triangle formation on the 12-hour chart of SOL, suggesting a continuation pattern that typically precedes upward price movements.

Solana

The ascending triangle formation implies that SOL’s price has been consolidating within a tightening range, with higher lows and a resistance level of around $68.2. If SOL manages to sustain a close above this critical level, it could trigger a bullish breakout, potentially propelling the price toward the $90 mark.

However, Martinez advises caution and emphasizes the importance of monitoring the $60 support level. Any signs of weakness or a breach of this level may trigger a spike in profit-taking by traders, potentially leading to a temporary price decline. In such a scenario, SOL could experience a dip, potentially reaching as low as $47.

Solana

Featured image from Shutterstock, chart from TradingView.com 

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Crypto Expert’s Picks: 5 Cryptos To Buy, HODL, Or Sell Now

Renowned crypto expert and Forbes’ Director of Digital Asset Research, Steven Ehrlich, has provided insights on five prominent cryptocurrencies in the current market landscape.

Solana Shakes Off Setbacks, Positioned As Top Crypto To Buy

Bitcoin BTC), the most prominent cryptocurrency, has experienced a remarkable 120% surge in 2023. After a long wait for Securities and Exchange Commission (SEC) approval of a Bitcoin exchange-traded fund (ETF), recent developments indicate that a Spot Bitcoin ETF could finally get the green light by January, as many in the crypto community have predicted, according to Ehrlich.

Introducing Bitcoin ETFs is anticipated to generate significant demand from mainstream investors, contributing to a potentially bullish environment. Furthermore, the impending fourth halving event in April, which reduces block rewards and slows down supply, adds to the positive outlook for Bitcoin.

While Ethereum (ETH), the second-largest cryptocurrency, has demonstrated substantial growth historically, its performance this year has been comparatively modest, with a 65% increase. 

Crypto

Concerns about regulatory ambiguity in the United States, particularly as it relates to tokens like Ethereum, have dampened investor confidence. In addition, despite a major upgrade aimed at improving efficiency and reducing energy consumption, Ethereum’s growth in key metrics, such as transactions per second and active users, has been underwhelming; for these reasons, Ehrlich believes investors need to hold ETH tokens.

Solana (SOL), on the other hand, often referred to as the “Ethereum killer,” suffered setbacks following the collapse of FTX in 2022. However, the stigma surrounding Solana has dissipated, leading to an impressive 313% gain this year. 

According to Ehrlich, Solana stands out for its “robust technology,” capable of processing thousands of transactions per second and potentially reaching 50,000 transactions per second. As such, Ehrlich believes this is a buy signal for SOL.

Binance Coin At Crossroads

Binance’s native token, BNB, experienced significant growth, reaching a peak value of $100 billion. However, recent developments, including Binance founder Changpeng Zhao’s guilty plea, substantial fines, and his decision to step down as CEO, have instigated a decline in BNB’s value. 

While BNB’s utility within the Binance ecosystem and rebate mechanisms for traders may provide some support, concerns arise if traders abandon the exchange en masse. 

Given these developments, BNB’s future remains uncertain, and Ehrlich believes that BNB could fall even further, stating that investors should consider selling the token.

Crypto

Blur, a marketplace focused on non-fungible tokens (NFTs), has emerged as a strong contender in the NFT market. As the largest marketplace for Ethereum-based collections, Blur rewards users with its native token, BLUR, based on trading volume and provides voting rights for platform governance. 

While NFT trading experienced a slump this year, recent signs of recovery, along with notable brands such as Disney and Nike embracing NFTs, indicate a potential rebound. However, Ehrlich believes investors should exercise caution due to the risk of unexpected token airdrops flooding the market.

Overall, Bitcoin’s forthcoming spot ETF and halving event, Ethereum’s regulatory challenges, Solana’s technological prowess, BNB’s uncertain future, and Blur’s position within the crypto NFT market are all factors that warrant consideration. 

It remains to be seen how these cryptocurrencies will react to further developments, and what will be the impacts on their price actions for the last part of the year. 

Featured image from Shutterstock, chart from TradingView.com 

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SOL Price Forecast Takes Bearish Turn, Prepare For Potential Plummet To $30 Or Lower

Solana (SOL) has emerged as a prominent player in the dynamic world of cryptocurrency, showcasing a remarkable uptrend and delivering substantial gains. Despite a modest 3.6% correction in SOL price over the past 24 hours, the native token of the blockchain platform has recorded a significant increase of 43% over the past fourteen-day period.

However, the sustainability of these gains may be in jeopardy, as the SOL price appears poised for a significant decline and deep correction following an impressive 346% surge over the past year.

SOL Price Vulnerable To Significant Drop, $30 In Sight

Crypto analyst Ali Martinez has shed light on the potential challenges ahead for SOL. Martinez highlights the TD Sequential indicator, which currently shows a sell signal on the weekly chart of SOL.

The TD Sequential indicator, developed by market technician Thomas DeMark, is a technical analysis tool to identify potential trend reversals or exhaustion points in price movements.

SOL price

The indicator consists of consecutive candlesticks that meet specific criteria based on the time and price movements. It looks for specific patterns in the price action, including the arrangement of consecutive highs and lows and the overall trend direction.

When the TD sequential indicator generates a sell signal, as seen on the SOL chart above, it indicates that the token is reaching a point of exhaustion in its uptrend, possibly indicating an impending correction or reversal.

According to Martinez, if the bearish formation depicted by the TD Sequential indicator is confirmed, market participants may witness a downward swing for SOL price, potentially pushing it towards $45 or even dipping as low as $30. 

Solana Defies Correction Worries

Despite the potential for a price correction in the coming days or weeks, Solana has demonstrated impressive growth across various fundamental metrics, as revealed by data provided by Token Terminal.

When examining market capitalization, SOL’s circulating supply currently stands at $24.62 billion, denoting a remarkable increase of 138.78%. Furthermore, the fully diluted market cap is estimated at $32.77 billion, reflecting a substantial growth rate of 134.29%.

SOL’s revenue has also grown significantly, with a notable increase of 106.55% over the past 30 days, amounting to $1.26 million. Scaling these figures to an annualized revenue of $15.28 million represents a healthy growth rate of 43.10%.

Transaction fees have also played a key role in SOL’s revenue generation. Over the past 30 days, transaction fees increased by 106.55% to $2.51 million. This represents a growth rate of 43.10% when extrapolated to annualized fee revenue of $30.56 million.

Solana’s growing ecosystem is further evidenced by an increase in daily active users, which currently averages 128,180, reflecting a notable growth rate of 53.6% over the past 30 days. 

Additionally, the platform has seen an average of 82.83 core developers actively contributing to its development, indicating a growth rate of 13.1%.

SOL price

Currently, SOL is trading at $58, with the next support level at $55, which will be key to the token’s prospects.

Featured image from Shutterstock, chart from TradingView.com

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SOL Price Reaches $41, But What’s Happening In Solana Ecosystem?

Solana (SOL) has garnered significant attention in the cryptocurrency market, surpassing its peers with an impressive 79% upward trend over the past 30 days. As its price continues to soar, inquiries have arisen regarding the reaction of the Solana ecosystem to this surge.

About this subject, the Jarvis Labs team has offered intriguing insights into the ongoing SOL bull run and the condition of its ecosystem, addressing the factors influencing its growth.

Is The Solana Ecosystem Lagging Behind?

Despite SOL’s price surge, the Total Value Locked (TVL) on Solana has only doubled during this period, failing to match the fourfold increase in SOL’s token price. This disparity raises concerns about the growth and development of Solana’s ecosystem in 2023. A closer examination of the ecosystem reveals a significant lag compared to the rapid appreciation of SOL’s price.

Solana

The Jarvis Labs team highlights that a new wave of projects injects liquidity into Solana’s ecosystem, offering hope for its growth. Notably, these projects have been launched within the past year, leading to a diverse ecosystem rather than a concentration of similar offerings. 

Among the top gainers in TVL, seven projects emerged recently, contributing to Solana’s expanding landscape.

Several projects have caught attention within Solana’s ecosystem, showcasing their potential to drive growth. Jito, a liquid staking provider, offers maximum extractable value (MEV) rewards alongside staking yields. 

Marginfi, another noteworthy project, offers liquid staking tokens (LST) based on Jito’s platform, as well as a lending service emphasizing risk management. Additionally, decentralized exchanges like Phoenix and Jupiter have excelled in their respective niches.

Surprisingly, many successful projects within Solana’s ecosystem have yet to launch their tokens. This absence of tokens, according to Jarvis Labs, has contributed to “the lag in Solana’s TVL” despite the soaring token price. 

Sustainable Token Design

The hesitance to introduce tokens stems from past experiences, where projects tied to now bankrupt crypto exchange FTX and its trading arm Alameda Research suffered significant losses, leaving a cautious sentiment among Solana developers, according to Jarvis Labs’s analysis.

The Jarvis Labs team believes that while tokens have the potential to be valuable assets, the cautionary tale of FTX-related projects highlights the importance of sustainable token design. Fair distribution, reasonable supply, and clear use cases are essential to creating tokens that add real value to the ecosystem.

Despite the challenges Solana’s ecosystem faces, the emergence of new projects and the forthcoming launch of tokens by some protocols offer hope for its future growth. 

Ultimately, Jarvis Labs suggests that by embracing sustainable token designs and maintaining a focus on ecosystem development, Solana can unlock the full potential of its “thriving network.” The Jarvis Labs’ analysis concluded: 

So, to all the Solana protocols out there: let’s make tokens great again. Let’s create tokens that are more than just a quick cash grab, tokens that contribute to the growth and sustainability of the ecosystem.

Solana

SOL’s price is approaching the $42 level, experiencing a notable surge of 3.7% within 24 hours.

Featured image from Shutterstock, chart from TradingView.com 

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Bull Season: Analyst Outlines Breakout That Could Send Solana To $100

Solana has performed exceptionally well in the October crypto market rally. But crypto analyst FieryTrading believes that this might just be the beginning for the SOL price. According to the analyst, once Solana breaks the resistance at $38, then it is headed for another 150% increase.

Pushing Solana To Past Glory

Solana already made its way through to $39 over the last day before losing some of its gains. But this has not eliminated the bullish trajectory of the altcoin. In fact, SOL’s continued uptrend plays into FieryTrading’s prediction for the asset which puts it at $100.

As the crypto analyst points out, there is heavy resistance for Solana just around the $38 level and this has been proven by the coin’s performance so far. Its initial move above this level was met with resistance that pushed it back down toward $37 before resuming its rally once again.

FieryTrading refers to this as an “important area of resistance” at which he expects investors to begin some profit-taking. But a break above this level holds a lot of promise for SOL. The analyst expects an initial bounce above $40, a slight retrace, and then a surge to $100.

Solana price chart from Tradingview.com crypto analyst

Returning to this $100 level would mean a return to the 2021 bull market levels, essentially signaling the start of the bull market for Solana. However, there are still some obstacles to face as the Bitcoin slowdown is having a near market-wide effect.

FTX Stash Threatens SOL Price

By now, it is no longer a secret that the bankrupt FTX exchange is one of the largest holders of SOL. And recently, the estate got the green light from the courts to start selling off some of its crypto holdings and Solana is a prominent asset in its stash.

As NewsBTC reported, the FTX estate recently unseated a soul of 1.6 million SOL tokens worth over $42 million. Now, there hasn’t been any indication of what FTX plans to do with these tokens but the likely outcome is that the estate will start selling the tokens on the open market.

If this happens, then investors should expect significant selling pressure on the SOL price which could send it back down toward $30. This FTX stash remains one of the most bearish indicators for the altcoin that could stop its rally dead in its tracks.

Nevertheless, Solana is still seeing a lot of interest from large institutional investors. CoinShares reported that Solana inflows from last week came out to $23.9 million, bringing the total SOL assets under management (AuM) to $214 million.

Solana price chart from Tradingview.com (SOL FTX)