Left in the dust during Bitcoin’s recent surge, Solana grabbed the spotlight this week after analysts identified a fractal predicting ‘parabolic’ upside ahead for the network’s SOL token. The technical pattern points to $600, more than 450% above today’s price.
TLDR
- Solana price could reach $600 based on fractal predicting SOL will replicate ETH’s 1400% gains after Bitcoin breaks out to new highs
- Fundamentals look strong with Solana TVL at 20.51M SOL, highest since January 2023, indicating decreasing circulating supply
- Network adoption metrics like fee payers, DEX volume, and NFT volume saw triple digit QoQ growth in Q4 2023
- Technicals show bull pennant pattern on daily chart targeting $200, but breakdown below lower trendline risks 45% drop to $60
- Despite recent volatility, bullish signs appear with MACD convergence as NFT ecosystem sees major growth, signaling potential return to $140
Independent analyst Hansolar made the call based on Solana tracking Ethereum’s monster 1400% breakout in the 2020-2021 bull market. After Bitcoin topped $20K, ETH went vertical to nearly $5,000. And with BTC en route to $150K this cycle, according to one prediction, a proportional SOL surge could materialize.
Crucially, network adoption metrics flash green for Solana, suggesting ample fundamental support for an extended price run-up. Total value locked across Solana DeFi platforms sits at 20.51M SOL after surging in recent months. The rising figure indicates decreasing circulating token supply and upside price pressure.
Solana’s quarterly stats also impress, with Q4/2023 showing triple-digit percentage growth in daily fee payers, DEX volumes, and NFT volumes. And ecosystem activity continues surging in Q1 behind an airdrop for Jupiter DEX. Add Blockchain Babe’s call for $500 SOL, and the stage looks set for fireworks.
On the technical front, Hansolar and others eye an imminent breakout from Solana’s bull pennant pattern on the daily chart. The technical setup typically resolves upward by the height of the preceding move – about 75% here, putting $200 in play near-term.
To the downside, losing the pennant’s lower trendline support risks invalidating the bullish formation. An extended pullback could unfold in that scenario, with the price giving back 45% toward $60.
Despite recent consolidation and volatility causing ‘turbulence’ in the $120-130 zone, analyst Gideon Geoffrey believes the ‘gear is set for Solana to return to $140.’ Signs include a bullish MACD convergence and exploding NFT ecosystem recording over $5B in sales.
So while Solana failed to keeping pace with Bitcoin’s push toward $70K in recent days, technical and on-chain signals suggest the network’s native asset looks ready for a ‘massive breakout’ of its own.
$600 represents the ultimate target – but traders see potential for triple-digit percentage gains in the weeks ahead.
