- Solana (SOL) is expected to embark on another rally once it successfully secures the $250 mark; however, failure to breach this level could see the asset falling to as low as $135.
- Another analyst has predicted that SOL could hit $5,000 in this cycle after completing the formation of a cup and handle pattern on the weekly chart.
Solana (SOL) recently broke a historic resistance level at $250 to set a new all-time high at $263. However, the asset has since plummeted to $230, declining by 2.9% on its weekly price chart.
Meanwhile, an analyst believes that re-securing the $250 price zone and turning it into support could mark a significant entry into a price discovery mode.
Reviewing Rekt Capital’s Prediction
Analyzing a thesis published by analyst Rekt Capital, we discovered that the last time Solana broke its $250 level in the previous cycle was in late 2021. At that time, it proceeded into the $260 price zone before staging a bearish reversal in a prolonged bear market. Fascinatingly, a similar pattern seems to be playing out.
According to Rekt Capital, failure to recapture this historic price point could see the asset falling to $202.82 or even $135.97. On the contrary, the current market scenario appears different from the previous cycle, implying that Solana could bounce back. In this case, the analyst points out that $300 could be the next psychological level. From this point, Solana could target $350–$400. Meanwhile, this range has been a crucial resistance zone based on Fibonacci extensions and historical price behavior.
Looking into Coinglass data, we found that Solana’s trading volume was 0.58% up, with $11 billion changing hands. However, its open interest (measurement of active derivative contracts) was down by 5.4% to $5 billion. The Open Interest – Funding Rate was also up, indicating a sustained positive outlook in the derivative.
According to our research, the Funding rate has been up since mid-October. Meanwhile, its Total Value Locked (TVL) was around $8.44 billion, down from the $9 billion recorded on November 27. Additionally, Solana’s stablecoin market capitalization was around $4.598 billion, with $7.16 million generated in fees and $3.58 million generated in revenue.
Further exploring its on-chain data, we observed that investors remain confident in the ecosystem as its active addresses within 24 hours were around 6.07 million. Within the period, transactions facilitated across the network were around 52.71 million. Our recent report also establishes that Solana’s Decentralized Exchange (DEX) volume has surpassed $600 billion and doubled the trading activities of Ethereum (ETH).
How Far Would Solana Rise?
According to analyst Crypto Bullet, Solana could surge to $600. This analyst accurately called the price action when the asset was consolidating in April. Fascinatingly, another analyst identified as CryptoRus believes that Solana could hit $5000 in the current cycle.
Looking into this prediction, we observed that the asset would record an impressive growth of 1,965% to reach that level. According to our analysts, this appears possible as the asset has cumulatively surged by 2,447% from its 2023 low.
CryptoRus’ prediction was based on the formation of a cup and handle pattern on SOL’s weekly chart. At the time of his prediction, the asset was already moving above the upper side of the cup at $208. Additionally, the handle section was already formed, as indicated in the chart below.
His thesis also demanded that the asset breach the $259 mark to confirm the breakout. However, SOL took a nosedive after breaking above this level. According to the analyst, this bullish prediction would be invalidated if the price falls below the lower side of the handle at $110.
