Solana (SOL), the sixth-largest crypto by market capitalization, continued to show lackluster performance Thursday, extending its month-long downward trajectory within a narrow price channel.
This comes after a significant rally from September to a new all-time high of $263.83 in mid-November. However, SOL has now revisited the previous March high of $205, a level analysts see as critical support, hinting at a potential reversal.
In a recent tweet, analyst MartyParty highlighted a recurring price pattern he refers to as a “ghost feed” candle formation, forecasting another parabolic move akin to the surge seen in early 2024. The chart shows that Solana (SOL) has stabilized in the $205-$210 range, signaling the potential for a strong upward rally.
According to MartyParty’s analysis, this development, combined with a fractal pattern observed from January to mid-March 2024, points to a possible price target of $345.
Analysts “Ridger R” analyzed Solana’s price correction, suggesting it has completed its downward wave. According to his analysis on TradingView, Solana’s price USD has found support in a demand zone, forming a bull flag pattern. The pundit noted that he anticipates a breakout from this formation, followed by a retest of the breakout level before Solana might be poised to attack new all-time highs. Although specific price targets from this analysis aren’t mentioned, similar formations typically suggest moves towards or beyond previous resistance levels, hinting at targets in the $400 to $600 range or higher.
Beyond the technical indicators, several key fundamental factors fuel increasing optimism around Solana. According to data from the crypto analytics platform Token Terminal, Solana (SOL) captured 53% of global crypto users in November, outpacing all other blockchains combined.
Solana’s growing adoption and expanding ecosystem have also bolstered its reputation as a top-tier blockchain platform. Data from DeFi Lama reveals that its Total Value Locked (TVL) has surged to $8.93 billion, nearing its pre-FTX levels of approximately $10 billion in 2022. This remarkable rebound demonstrates that, two years on, Solana is not only surviving but thriving.
Moreover, Solana has surpassed Ethereum regarding developer growth for the first time in nearly a decade. The 2024 Developer Report from Electric Capital reveals that Solana attracted 19.5% of all new crypto developers in 2024, overtaking Ethereum for the first time since 2016. This marks a significant shift in the blockchain landscape, with Solana emerging as the leading choice for new developers this year.
Known for its scalability, Solana can process over 50,000 transactions per second at low costs, making it a strong competitor to Ethereum in decentralized finance (DeFi), NFTs, and Web3 applications. With its expanding ecosystem, growing developer base, and solid fundamentals, Solana’s price could very well see significant growth, potentially reaching new milestones in the near future.
At press time, SOL was trading at $187, reflecting a 9.84% drop in the past 24 hours.
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