Will Solana Price Hit $5,000? Analyst Explains
Solana has been in the spotlight since the bull run began in 2023. The meme coin frenzy coupled with it being an Ethereum competitor, SOL is perfectly positioned this bull run. Although Solana price is close to $200, this analyst believes it could hit $5,000 this cycle. Is this target exaggeration or is it possible? Let’s explore.
Analyst Forecasts Solana Price to Hit $5,000 This Cycle
In an X post, CryptoRus, who has over 245k followers, made a bold SOL price prediction, in which he said that the coin will rise to at least $5,000 in the ongoing cycle. If that happens, it means that Solana price will need to rise by 1,965%.
Such a move is possible since the coin has already jumped by 2,447% from its 2023 lows. The analyst pointed to the cup and handle pattern that has happened on the weekly chart. As shown below, the coin has already moved above the upper side of the cup at $208.
It has also completed the formation of the handle section. Now, the coin needs to clear the important resistance level at $259.72, its all-time high to confirm the breakout.
In C&H pattern, traders identify potential targets by measuring the distance between the upper and lower sides of the cup. They then extrapolate that from the upper side of the cup. In this case, Solana price may jump to between $4,000 and $5,000.
Such parabolic moves have happened in the crypto industry in the past. For example, Bitcoin has soared from below $1 in 2009 and is approaching $100,000. Similarly, Ethereum price has jumped from less than $10 to over $3,000 today.
The bullish Solana forecast will become invalid if the coin drops below the lower side of the handle at $110. Such a move will invalidate the bullish view of the C&H pattern and point to more downwards.
Other Reasons Why SOL Could Soar
Solana has numerous catalysts that could push its price higher in the coming months. First, there are signs that Bitcoin is about to break above $100k. It has taken it 16 years to move from less than $1 to $100k and the move to $200k could take it a shorter period. If this happens, altcoins like Solana will continue doing well.
Second, Solana’s blockchain is firing on all cylinders and is outperforming Ethereum and other networks. Data by DeFi Llama shows that its DEX networks handled over $52 billion in volume in October while Ethereum handled $42 billion. This month, it has handled $92 billion compared to Ethereum’s $45 billion.
Additionally, Solana’s network has become a favourite one for developers, especially those in the meme coin industry. Solana meme tokens have attained a market cap of over $21 billion. Therefore, these strong fundamentals will likely push the SOL price higher in the long term.
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