The Solana price is firing on all cylinders and technical data suggests the rally is just getting started. It rose for three days in a row and reached its all-time high of $260. It is up more than 3,000% from its 2023 low.
Solana price could jump to $8,000
The weekly chart shows Solana’s price has made a significant comeback after bottoming at $7.65 in 2023 as the FTX crisis continued. With the crisis now behind us, there is a chance that the coin is about to stage one of the biggest rallies in the crypto industry.
This is because a cup and handle pattern has formed, which is a popular sign of bullish continuation. This pattern is so known because it closely resembles a cup with a rounded bottom and handle.
In this case, the upper limit is $260, which is about 3,000% above the 2023 low. To make a good price forecast for SOL, you need to measure a distance of 3000% of $260. If this happens, it means the coin will rise to $8,000.
The problem with the C&H template is that it usually takes a long time. For example, it took SOL price three years to complete the cup portion of the figure.
At the same time, the coin remained above the 50-week and 200-week moving averages, a sign that the bulls are in control. Solana oscillators such as the relative strength index (RSI) and stochastic have continued to rise over the past few months.
In addition, Solana has broken through the extreme resistance of Murray’s math lines, meaning it has two more levels to climb: an overshoot at $281 and an extreme overshoot at $312. The top of this pattern is about 21% above current levels.
The bullish price forecast for SOL will become invalid if the coin falls below the weak point, stop and reversal point at $218.
The price of SOL has many underlying factors.
Solana’s rally is supported by strong fundamentals. First, open interest in futures for the coin jumped to a record high of $6 billion, a remarkable achievement for an asset that had interest below $600 million in 2023. This futures open interest is a sign that there is strong demand among investors and traders in the futures market.
Read More: Solana Price Rally: Can Bulls Push SOL Above $350 After Crossing $241?
Secondly, the Solana ecosystem is booming as the market capitalization of the meme coin ecosystem exceeds $20 billion. The largest coins on this network are Bonk, Dogwifhat, Popcat and Peanut the Squirrel. This estimate means that Solana accounts for 18% of the meme coin industry.
Third, this rise of meme coins has led to impressive volume in the DEX ecosystem. Data shows that Solana’s DEX network processed $5.67 billion worth of volume in the last 24 hours, which is more than Ethereum and Base processed in the same period combined.
Volume this month was $102 billion, more than double Ethereum’s processing volume. This is notable since a few months ago Ethereum held the largest market share in the sector, driven by Uniswap.
The same trend is observed in the perpetual futures market, where Solana became second after Hyperliquid. In the last seven days, its networks have processed $2 billion in volume, surpassing the $1.26 billion processed by Ethereum.
In addition, there is a growing possibility that companies will apply to create a Solana ETF, which Gary Gensler rejected. Under the Trump administration, there is a possibility that these funds will be used even with betting features, leading to a larger influx of funds.
The post Solana Price Prediction: Here’s Why SOL Token Will Hit $8,000 appeared first on Invezz
