Solana Prediction Archives

Technical Insights Into SOL Potential $360 Rise

According to the trader, CryptoJack on X, SOL has developed a “rounding bottom pattern” over an extended period, indicating it is on the brink of a significant breakout.

Notably, the ’rounding bottom’ pattern, characterized by a gradual decline followed by a stabilizing trend and an upward breakout, is a classic bullish indicator in technical analysis.

CryptoJack’s analysis points out that Solana is setting up for a significant uptick, aiming for a price target double its current value of approximately $146.

Solana formed a rounding bottom pattern over many weeks and is primed for an explosion any moment now.

I entered a Long position on $SOL and expect it to break ATHs this year! #Solana pic.twitter.com/ApUazaXXz5

— CryptoJack (@cryptojack) May 8, 2024

Not only does CryptoJack see a bright future for Solana, but other analysts, such as Altcoin Sherpa, also maintain a bullish stance, with projections of the token potentially surpassing $500 this year.

This would represent a 300% increase from its current level, adding to the 589% growth it has already achieved year-to-date.

Solana Challenges Ethereum

While Solana has shown notable growth, some of its key metrics are also beginning to keep up the pace. Dan Smith, a senior research analyst at Blockworks, suggests that Solana could soon surpass Ethereum regarding transaction fees and capture Maximal Extractable Value (MEV).

Smith’s analysis of X highlights that Solana’s total economic value is nearing Ethereum’s, indicating its increasing relevance in the blockchain space.

Solana will flip Ethereum in transaction fees + captured MEV this month, maybe even this week

— Dan Smith (@smyyguy) May 7, 2024

Despite this competition, Ethereum maintains a significant lead in daily transaction fees and total value locked (TVL). In the last 24 hours, Ethereum generated over $2.75 million in fees, compared to Solana’s $1.49 million.

Moreover, according to data from DeFillama, Ethereum’s TVL of over $53 billion dwarfs Solana’s $3.96 billion, representing just about 7.2% of Ethereum’s scale.

Meanwhile, Ethereum does not come close to Solana in terms of market performance. Solana has seen quite outstanding growth in the past year, surging by over 500%. On the other hand, Ethereum has only seen a 66% surge over the same period.

Featured image from Unsplash, Chart from TradingView

Trader and market analyst Peter Brandt has provided valuable perspectives on the recent price movement of Solana (SOL), suggesting the completion of a notable chart pattern.

In particular, Brandt has noted a descending triangle pattern forming on Solana’s 4-hour price chart.

Identified Chart Pattern On SOL And Its Implications

The descending triangle pattern identified by lower highs and a horizontal support line is often interpreted in technical analysis as a signal of a potential downtrend continuation. Brandt’s recent post highlighted the completion of this pattern, drawing attention to a crucial development for SOL traders.

Brandt’s analysis extends beyond the mere identification of the pattern. He underscores the significance of pattern validation over its completion.

According to Brandt, a pattern’s failure to fulfill its expected role carries more weight than its mere completion.

With the descending triangle pattern now confirmed for SOL, market participants’ anticipation is palpable as they await potential price movements, whether to the upside or downside.

A descending triangle has been completed in $SOL
I am only the messenger, not the message
Remember, a pattern failure (to do what it is supposed to do under classical rules) is more important than a pattern completion pic.twitter.com/ezershgA5A

— Peter Brandt (@PeterLBrandt) April 10, 2024

Solana Network Challenges Amidst Price Fluctuations

While Solana’s price performance has fluctuated over the past week, recent network challenges have added another layer of complexity to the asset’s situation. Despite a 12.7% decline in SOL’s value over the past week, there has been a slight uptick of 4% in the last 24 hours.

Bitcoin (BTC) price chart on TradingView

However, ongoing network congestion has presented obstacles. Solana developers are actively addressing these issues, with efforts underway to resolve network congestion experienced on April 15.

Mert Mumtaz, CEO of Helius Labs, a key contributor to Solana’s maintenance and enhancement, clarified that the current network challenges stem from implementing a specific protocol rather than an inherent design flaw in Solana.

solana’s current issue is not a design flaw, it’s an implementation bug

it is now hitting me that some folks might not understand what we’ve been trying to say by this for the past week

I’ll simplify it (intended for non-technical people)

it is important to make this… pic.twitter.com/fNZzu9f90S

— mert | helius.dev (@0xMert_) April 8, 2024

Meanwhile, Solana’s open interest in the futures sector, a metric used in derivatives markets referring to the total number of outstanding contracts, has experienced fluctuations in recent times.

While it saw steady growth from January to April, reaching an all-time high of $2.86 billion on April 1, recent network issues have led to a decline. Coinglass data indicates that Solana’s open interest has fallen to $2.4 billion since April 11, reflecting a 5% decline in just over a week.

Solana open interest on exchange.