Solana SOL Shatters 160 Barrier Can it Reach 1000 During This Bull Market
Solana’s native token, SOL, has experienced a notable surge, surging 13% between July 14 and July 16 and surpassing the $160 resistance level for the first time in five weeks.
This sudden increase in SOL’s price has captured the attention of traders and analysts alike, with some setting ambitious price targets for the cryptocurrency.
The recent excitement surrounding SOL can be attributed to several factors. Firstly, the final phase of Ethereum exchange-traded fund (ETF) approvals has had a ripple effect on the crypto market. Bloomberg analyst Eric Balchunas revealed that the U.S. Securities and Exchange Commission (SEC) has issued final instructions to asset managers, with a potential launch date of July 23. This news has instilled positive sentiment across the cryptocurrency sector, including Solana.
Furthermore, Solana’s ecosystem has been strengthened by the success of memecoins on its network. Tokens such as BONK and Dogwifhat (WIF) have achieved multi-billion dollar market capitalizations, thanks to the low transaction fees offered by the Solana network. This memecoin frenzy has resulted in increased network activity and improved liquidity within the Solana ecosystem.
The growth and strength of the Solana platform is evident in its total value locked (TVL), which has now surpassed that of BNB Chain. Solana has now become the second-largest blockchain in terms of decentralized exchange (DEX) volumes, closing in on the market leader, Ethereum. Notable projects on the Solana network, including Jito, Kamino, and Jupiter Perpetual, have experienced significant growth in TVL over the past month.
Derivatives markets are also displaying bullish sentiment for SOL. The SOL futures premium currently stands at 12%, indicating cautious optimism among traders. This is particularly noteworthy considering SOL has seen a 25.7% increase in value over the past eleven days.
While some analysts are eyeing a near-term target of $180 for SOL, others have set more ambitious goals. A pseudonymous analyst on TradingView, known as ‘NoLimit,’ has presented a bullish scenario that could potentially see SOL reaching $550 or even $840, representing a potential 450% increase from its current value. This prediction is based on technical analysis, including a cup and handle formation and Fibonacci extension.
Even more optimistically, some experts believe that SOL could reach $1,000 during the next bull run. Analyst Captain Faibik stated on social media, “I believe $SOL #Solana will hit the $1,000 mark in the upcoming Bullish Rally.” This projection aligns with Solana’s historical growth trajectory and its recent recovery from a prolonged downtrend.
Market observer Daniel Cheung has compared the current situation to previous bullish periods for Solana and believes that explosive returns are just around the corner.
As Solana continues to gain momentum, all eyes will be on its price action and ecosystem development in the coming weeks and months.
