TLDR
- Solana (SOL) price is showing signs of a bullish trend, with recent support at $140.
- SOL saw $4.5 million in inflows according to CoinShares’ weekly report, indicating rising investor interest.
- Technical analysis suggests potential targets of $180 and $200 if bullish momentum continues.
- Some analysts compare Solana’s current price action to Ethereum’s performance in late 2020.
- A crypto trader predicts Solana could reach $1,000, based on comparisons to Ethereum’s previous bull run.
Solana (SOL), the fifth-largest cryptocurrency by market capitalization, is showing signs of bullish momentum as it rebounds from recent support levels. Analysts and traders are closely watching SOL’s price action, with some drawing parallels to Ethereum’s historical performance and making ambitious price predictions.
Recent data from CoinShares’ weekly report reveals that Solana saw $4.5 million in inflows, suggesting growing investor interest. This uptick in investment comes as the broader crypto market experiences increased activity, with total inflows reaching $176 million across various digital assets.
Solana’s price recently found support at the $140 level, reinforced by the 200-day Exponential Moving Average (EMA). This bounce has sparked optimism among traders, with some technical analysts eyeing potential targets of $180 and $200 if the bullish momentum continues.
The cryptocurrency’s recent performance is noteworthy given the historical low trading volumes typically seen in August. Despite this seasonal trend, SOL has demonstrated resilience and potential for significant recovery.
Adding to the positive sentiment, short-position liquidations for Solana have been increasing. According to Coinglass data, traders have forcefully closed $4.92 million worth of short positions compared to $3.27 million in long positions. This imbalance in liquidations often signals bullish momentum, as forced buying from liquidated short positions can amplify price rallies.
From a technical analysis perspective, key resistance levels to watch include the confluence at $155 formed by the 20-day and 50-day EMAs, last week’s resistance at $160, and the weekly target of $180. The Moving Average Convergence Divergence (MACD) indicator is showing a stubborn sell signal, suggesting that traders may want to wait for additional confirmation before entering long positions.
Some analysts are drawing parallels between Solana’s current price action and Ethereum’s performance in late 2020. CryptoKaleo, a crypto trader and analyst, has pointed out similarities in the price structures of the two cryptocurrencies. Based on this comparison, he has made the bold prediction that SOL might hit $1,000 in this bull market.
The current $SOL chart looks incredibly similar to what $ETH did in late 2020 prior to sending to new ATHs.
If Solana manages similar growth from the previous ATH that ETH did last cycle during this bull market, $1K SOL is a reasonable target. pic.twitter.com/JYqaLtomUs
— K A L E O (@CryptoKaleo) August 12, 2024
CryptoKaleo’s analysis is rooted in historical price patterns and market cycles observed in Ethereum’s past performance. He suggests that if Solana manages similar growth from its previous all-time high as Ethereum did in the last cycle, a $1,000 price target for SOL could be reasonable.
Supporting the bullish outlook, Solana continues to lead in the decentralized physical infrastructure network (DePIN) sector, hosting 78 projects—more than any other blockchain network.
This growing dominance in DePIN, coupled with recent achievements such as the approval of its first spot ETF in Brazil, has further fueled positive sentiment around SOL.
