Solana (SOL), the fifth-largest cryptocurrency on the market, has been on a downtrend in recent weeks, hitting a two-month low of $121 on Friday. The coin struggled to break above $188 in May, leading to a continuous downtrend has further intensified over the past seven days due to the general market correction.
However, crypto analyst Jelle has provided optimism, suggesting the potential for significant growth in SOL in the coming months, reminiscent of the legendary “Solana summer” of 2021.
Analyst draws parallels with 2021’s ‘Solana summer’
Jelle shared on social media analysis SOL price dynamics, drawing parallels between its current behavior and the events of the summer of 2021. The analyst noted months of consolidation, characterized by lower highs while maintaining support above the $120 level.
Jelle highlighted that SOL is rebounding from the weekly Relative Strength Index (RSI) average, mirroring the pattern seen in July 2021. Encouraged by this similarity, Jelle took a bold leap of faith in Solana’s future, setting a $600 target for it. market cycle.
During the Solana Summer of 2021, the price of SOL more than tripled from July to November. The coin’s market cap increased significantly from a pre-summer low of $10 billion to an impressive high of $63 billion by the end of the year, ultimately bringing the price of SOL to its current the highest ever 259 US dollars.
Jelle’s bullish forecast implies the potential for even bigger gains this time around. A jump from the current trading price of $141 to $600 would represent a massive 352% gain, surpassing the coin’s current value.
However, Solana faces immediate resistance just above its current trading price of $143, a major barrier that has proven challenging for the token over the past six days.
Next targets are the 200-day exponential moving average (EMA) and the $150 resistance level. 200 day EMA has served as a key support level for the token over the past six months, helping to propel its price higher in the first quarter of this year, reaching a yearly high of $210 on March 18.
A rebound of the 200-day EMA will be crucial for Solana Bulls as it will allow the token to reach and break the next hurdle at $170.
Market capitalization fell by double digits
Key Financial Metrics Analysis for Solana Blockchain Performance and Price Correlation, Token Terminal Data shows that Solana’s fully diluted market cap is $80.78 billion. However, this figure represents a decline of 11.9% over the past 30 days.
Solana’s current market cap, which takes into account the number of tokens actively trading in the market, is currently $64.54 billion. Like its fully diluted market cap, this figure has fallen 11.4% over the past 30 days, along with the price of SOL.
However, despite the recent market decline, Solana’s token trade volume The market has remained relatively stable over the past 30 days, with trading volume reaching $77.37 billion, indicating continued interest from bullish investors.
Main image from DALL-E, chart from TradingView.com
