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Analyst Predicts Solana (SOL) Bounce Amid Network Congestion Problems

Solana (SOL) faced difficulties the past week after the network’s transaction failure rate reached over 75%. Since then, Solana’s core contributors have been working to find the congestion problems.

SOL’s price tumbled 7.8%, and users seemed worried about the network’s state. Despite this, some analysts predict a more optimistic performance for SOL soon.

Is Solana Poised For A Bounce?

According to crypto analyst Bluntz, Solana’s drop has reached its bottom. When the news of network congestion broke, the analyst predicted that SOL’s price would likely fall to $160 before seeing a bounce.

According to his chart, the performance was starting to show an ABC zig-zag pattern. At the time, the token was trading around the $184 price range, which meant that the C wave of $160 had yet to be confirmed.

The analyst remained open to the “possibility of a sideways correction.” Nonetheless, he considered it “would make no sense for sol/usd to sweep down lower below 160.”

On Wednesday, SOL reached a low of $162, sweeping the “A wave low.” To the analyst, this seems to be the bottom for SOL’s price despite being $2 short of his prediction. As a result, Bluntz considers that the token’s price will go “higher from here.”

Crypto, Solana, SOL

Another analyst, Immortal Crypto, pointed out that SOL has shown a “good range” between $210 and $160. According to the analyst, “a deviation from here is a fat long, 100%.”

Despite the possible bounce forecast, analyst Altcoin Sherpa expects SOL to drop to $140, a level it has not seen in almost a month.

Will The Network Upgrade Help SOL?

In the last 24 hours, Solana’s price has risen 6%, recovering from the drop to the $162 range. Despite a 7.8% drop in the past week, the price surged 13.5% in the last 30 days.

Similarly, the daily trading volume increased by 28% in the past 24 hours, suggesting a surge in the token’s market activity.

Nonetheless, investors remain concerned about the network as the problems continue, with some suggesting that the token’s price won’t start pumping until the “tech is sorted out.”

Solana is widely recognized for its fast transactions and low fees. However, the current on-chain failure rate presents problems for both users and developers.

Responding to the critics and concerns, Austin Federa, Head of Strategy at the Solana Foundation, gave insights into the problem.

According to Federa, developers from the core contributors to the Solana chain are “working diligently to shore up Solana’s networking stack to meet the unprecedented demand the network is seeing today.”

The developer explained that “the implementation of a software system is today not robust enough to handle the amount of traffic being thrown at it.” As a result, the core protocol developers are working to test and implement improvements, leaving “increasing fees as a last resort.”

At the time of this writing, SOL is trading at $174.57.

Solana, SOL, SOLUSDT

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Solana (SOL) Breaks Through Key Resistance, Analyst Forecasts $250 Price Target

Solana (SOL) has experienced a notable resurgence in its bullish momentum, with a rebound of over 9% in the past 24 hours. This notable performance has outpaced the top 10 largest cryptocurrencies in terms of market capitalization.

The latest surge in SOL’s price has allowed it to surpass its resistance level on the daily chart at $184. The remaining hurdle of $201 now stands as the final barrier to prevent further gains for the cryptocurrency. 

However, industry experts and crypto analysts suggest that SOL’s price action indicates a potential continuation towards its previous all-time high of $259, achieved during the market’s bullish run in November 2021.

SOL  Price Expected To Breakout And Target All-Time Highs

One analyst, “Jelle,” highlights SOL’s successful transformation of the last significant resistance level into support, suggesting a positive outlook for the token’s future. The analyst predicts that the SOL price will continue to rise and potentially exceed $250 by the summer.

Similarly, another analyst using the pseudonym Mikybull points out that SOL is currently consolidating within a symmetrical triangle pattern on a daily timeframe. 

Solana

According to the analyst, a breakout from this pattern is expected to trigger an “explosive” price movement, aiming to reach its previous all-time high levels at around $255.

Supporting SOL’s renewed bullish momentum, CoinGecko data reveals a significant increase in trading volume, with $4,514,426,127 traded in the last 24 hours. This represents a 74.20% surge compared to the previous day, indicating a notable surge in market activity. 

Solana Metrics Demonstrate Growing Investor Interest 

According to data from Token Terminal, Solana’s key metrics further highlight the use and adoption of its blockchain among investors. Starting with market capitalization, the fully diluted market capitalization is $99.32 billion. This figure represents the total market value if all tokens were in circulation. The fully diluted market capitalization over the past 30 days has increased by 70.0%. 

On the other hand, the circulating market cap, which only considers the tokens currently in circulation, is valued at $77.05 billion. It has witnessed a 30-day growth of 71.3%.

Solana

Examining fees generated through transactions on the Solana network, the 30-day fees amount to $51.46 million. This represents a notable surge of 220.7% within 30 days, highlighting increased network usage and demand. When annualized, the fees reach $626.15 million.

In terms of revenue, Solana has seen positive growth. The 30-day revenue is $25.73 million, reflecting a significant increase of 220.7% over the past month. When annualized, the revenue amounts to $313.08 million, showing the sustainable income generation within the Solana network.

Solana

It remains to be seen if these metrics and bullish momentum will sustain SOL’s path to its current all-time highs.

Featured image from Shutterstock, chart from TradingView.com

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Pantera Capital Plans $250M Solana (SOL) Buy, Analyst Predicts Record Rally Toward $1000

Pantera Capital, a prominent crypto-focused asset manager with assets totaling $5.2 billion, has launched a fundraising campaign to purchase discounted Solana (SOL) tokens from the bankrupt estate of crypto exchange FTX. 

According to Bloomberg, the initiative, known as the Pantera Solana Fund, offers investors the opportunity to purchase up to $250 million worth of SOL tokens at a significant discount to the FTX estate.

Solana Token Acquisition Plan

Pantera Capital’s marketing materials, shared with prospective investors in February and reviewed by Bloomberg, outline the opportunity to purchase SOL tokens at a price 39% below the 30-day average or at a fixed price of $59.95. 

However, Bloomberg notes that investors participating in this opportunity must agree to a vesting period of up to four years. This approach reportedly allows FTX liquidators, led by John J. Ray III, to offload SOL tokens gradually, freeing up funds for creditors without exerting immediate downward pressure on the token’s price.

According to Pantera’s pitch document, the FTX estate currently holds approximately 41.1 million SOL tokens, valued at $5.4 billion as of the close of Wednesday’s trading session. This constitutes roughly 10% of the total supply of SOL tokens. 

According to its investor pitch, Pantera aimed to close the fund by the end of February. Although the amount raised by the deadline remains undisclosed, sources familiar with the matter confirmed to Bloomberg that Pantera has secured some funds.

Investors interested in participating in the Pantera Solana Fund must commit a minimum of $25 million. Pantera Capital plans to charge a management fee of 0.75% and a performance cut of 10%.

Apart from its substantial SOL token holdings, FTX and its sister firm, Alameda Research, have invested significantly in startups within Solana’s broader ecosystem. 

According to Bloomberg, FTX’s venture arm, Solana Ventures, and Lightspeed Venture Partners jointly announced a $100 million blockchain gaming fund in November 2021.

Ultimately, the estate’s intention to sell these tokens presents an opportunity to raise funds to repay creditors, considering the notable surge of SOL’s price in the past year. SOL has experienced a staggering 650% increase, trading nearly four times its price when FTX faced its crisis in November 2022.

Crypto Analyst Forecasts SOL To Shatter Previous ATH

SOL, the fifth-largest cryptocurrency by market capitalization, has continued its remarkable upward trajectory and is currently trading at $147.

The token’s price has increased significantly by 14% in the past 24 hours alone, and over the course of 30 days, it has soared by an impressive 56%. 

Despite this uptrend, SOL remains 43% below its previous all-time high (ATH) of $259, achieved in November 2021. However, crypto analyst Altcoin Sherpa believes that SOL will break its previous ATH during this market cycle, with the only uncertainty being the size of the break.

Altcoin Sherpa suggests that reaching $500 is highly probable, and an even more astonishing milestone like $1000 is not entirely out of the question. The analyst further emphasizes its confidence in SOL’s potential, stating that it remains one of their more substantial investments. Altcoin Sherpa also highlights the next significant level to watch for SOL, which is $170.

Solana

Featured image from Shutterstock, chart from TradingView.com 

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Solana (SOL) Hits $144: Analysts Feel Optimistic, Is A New ATH Imminent?

Solana (SOL) has been experiencing some volatility this week, but analysts seem optimistic about an ‘imminent markup’ around the corner. In the past 24 hours, Solana (SOL) has registered a 10.6% increase after breaking through the $140 barrier again.

Solana Rises Above $140

January of 2022 marks the last time Solana’s native token traded above the $140 price range. On Thursday, the fifth-largest cryptocurrency by market capitalization hit a new high and followed the uptrend the crypto market is experiencing.

On March 5, SOL’s price spiked 7.5% after going from $132 to $142. However, the excitement about the cryptocurrency surpassing $140 was short-lived.

The price started what looked like a freefall descent that shredded 16% of the token’s price, stopping at the $119 price range. Throughout Wednesday, SOL’s price continued to move in both directions while trying to stabilize above the $128 support level. The token finished the day hovering between the $130-$132 price range.

On Thursday, Solana picked up some momentum and tested the $141 level before facing a pullback to the $135 support zone. Later, SOL broke through the $140 barrier again as the price skyrocketed to $144, increasing 6.6% in just two hours.

Sol, Solana, SOLUSDT

For the past hour, SOL’s price has hovered between the $140-$142 price range, briefly falling below the $140 support zone. At writing time, the cryptocurrency trades at $142.10, accounting for an increase of 10.6% in the last 24 hours and 9.5% in 7 days. In the 30-day time frame, Solana has seen a stellar price surge of 50.8%.

However, SOL seems to be experiencing a slow market activity. According to CoinMarketCap data, the daily trading volume has decreased by 37.7% in the past 24 hours to $6.4 billion.

Is A New ATH Imminent For SOL?

Pseudonym crypto trader and analyst Bluntz previously forecasted Solana’s next leg up to be around the corner, saying that “the revenge pump is close.” Today, the trader reaffirmed that stance on an X (formerly Twitter) post.

Right before the price hit $140, the analyst posted two charts displaying SOL’s pair with BTC and USDT. The trader highlighted the patterns he previously used to make a prediction in February.

Based on the “nice simple ABC zigzag” with its BTC pair and the “nice sideways accumulation wave 4” with its USDT pair, the analyst considers that an SOL markup is “imminent.”

Related Reading: Ethereum Recovers From Dip: ETH Hits $3,900 For The First Time In Two Years

Moreover, crypto trader Ansem suggested that Solana’s new all-time high might be closer than expected. In an X post, the trader shared a chart exhibiting the price performance of the cryptocurrency.

SOL price, SOL

The chart above shows that SOL’s price of $138 was first achieved in early September 2021. Approximately 60 days later, Solana reached its all-time high of $260. If history repeats itself, according to the trader’s post, we could see “Solana’s new all-time high in less than 60 days.”

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Rising Stars: Report Highlights 5 Solana Projects Set For Success In 2024

Solana has been on a downward trend over the past week, following a surge from multi-year low levels. The token suffered when its biggest promoter, crypto exchange FTX, fell, but the ecosystem continued to thrive, leading to the high timeframe recovery. 

As of this writing, Solana’s native token SOL trades at $87 with a 2% profit over the past 24 hours. Over the previous seven days, the cryptocurrency records a 12% correction.

Solana SOL SOLUSDT

Rising Stars In The Solana Landscape

According to a report from Coingecko, the Solana network is witnessing a resurgence fueled by its recovery in the cryptocurrency market, notable reductions in network outages, and a series of positive developments.

This rejuvenation has drawn the attention of investors and developers and led to a surge in the adoption of existing projects within its ecosystem. Specific projects stand out among these, poised to shape the future of decentralized finance (DeFi) and non-fungible tokens (NFTs) on Solana, Coingecko claims.

Decentralized exchanges (DEXs) such as Jupiter, Orca, and Drift are at the forefront of Solana’s innovation. Jupiter is “transforming” the landscape with its limit-order decentralized swap services, offering a DEX aggregator to ensure users get the optimal price offers.

The chart below shows that its daily trading volume, involving around 90,000 unique wallets, has reached an average of $400 million.

Solana SOL SOLUSDT

Orca, another DEX, has a concentrated liquidity feature, Whirlpools, which enhances returns for liquidity providers and reduces slippage for traders. With a total value of approximately $185 million, Orca’s community-driven governance model is another selling point to attract new users in the coming months.

Drift is a decentralized perpetual trading platform, allowing traders to engage with up to 20x leverage. It integrates a series of features, including a money market for decentralized lending, offering additional passive income opportunities through staking and market maker rewards.

Furthermore, Solend, Marginfi, and Kamino are making strides on the lending front. Solend, a prominent money market, enables users to lend and borrow crypto assets, with over $165 million locked in its smart contracts.

Marginfi, boasting over $345 million in tokens locked, enhances the lending experience with advanced risk management technologies.

Kamino, another lending platform, manages over $242 million in assets. It offers liquidity through CLMM-based lending vaults, allowing users to deploy tokens in yield-bearing programs.

Emerging Projects: Helium And Render Network

In addition to these platforms, the report identified projects that could benefit from the surge of interest in Solana over the long run.

These include Marinade Finance and Jito. Marinade Finance, with over $1 billion in assets, offers maximized returns through liquid staking and immediate unstaking options. Jito, enhancing staking yields via MEV rewards, boasts about 6.7 million SOL staked across its platform.

In the world of NFTs, collections like Mad Lads and Tensorians are gaining popularity. Mad Lads, a unique collection of 10,000 artworks, reached a new all-time high in floor price, reflecting the increasing interest in Solana-based NFTs.

According to the report, Helium and Render Network are two emerging projects within the Solana ecosystem worth watching. Helium, a decentralized connectivity service provider, utilizes Solana’s blockchain to remit and administer its internet services. Its multi-token system incentivizes hotspot owners and fosters the expansion of decentralized internet facilities.

Render Network, expanding to Solana in 2023, offers GPU rendering services for creators. By renting out excess GPU power, artists can produce high-resolution graphics with the Render token (RNDR) as the network’s remittance token.

The Solana ecosystem, marked by innovation and rapid growth, solidifies its position in the smart contract blockchain space. Its diverse projects, from DEXs and lending protocols to staking solutions and NFT collections, showcase the network’s dynamic and burgeoning landscape. With the SOL token climbing the ranks, Solana’s ecosystem is poised for continued expansion and success in the years ahead.

Cover image from Unsplash, chart from Tradingview