- Solana (SOL) at $2000 is reported to be a realistic price, looking at its global adoption and few disruptions compared to Ethereum (ETH), which reached a market cap of $0.6 trillion last cycle despite its “outrageous” transaction fees.
- An analyst has also predicted that SOL could go all the way to $4000 with a crucial formation and the potential SOL ETF approval playing a key role.
Solana (SOL) made a resounding comeback during the weekend, sealing its move above the $130 resistance level by making a decisive surge to $140 at press time. According to our market data, the asset currently has positive returns on three of its major trading sessions.
On its 24-hour price chart, SOL recorded 0.27% gains, extending its weekly and monthly gains to 6.4% and 9.4%. Supporting this performance is the 24-hour trading volume, which increased by 56% as $3.4 billion moved around the market. Also, the asset’s fully diluted market cap reached $84 billion, making it the 6th largest crypto, just behind Binance Coin (BNB).
Speaking on the current market trend and its future potential, a popular analyst known as Crypto Curb has estimated that SOL could go all the way to $2000. Explaining his position, the analyst drew a comparison with Ethereum (ETH), which managed to hit a market cap of $0.6 trillion in the previous cycle. According to him, ETH reached this level despite becoming “unusable” with a transaction fee of more than $500 at a market cap of above $100 billion.
Commenting on Solana, Crypto Curb highlighted that a potential move to $2000 could position the market cap to $1 trillion, which is realistic. Per his observation, SOL could even achieve this with a better global adoption pace and minimal disruption to its scalability.
Fascinatingly, this aligns with a previous prediction by analyst Ali Martinez, which fixed a future move to $2000 and a subsequent surge to a more audacious position at $4000.
More About the Previous Comments on Solana’s (SOL) Potential
As indicated in our last analysis, Martinez linked this move to the formation of a “cup and handle pattern” on its monthly chart. At that time, he highlighted that the asset was yet to close above the handle trend line, which was found around the $240 level. Additionally, he pointed out that the formation started from the bear market in 2022, through the consolidation period in 2023, and the bull cycle in 2024.
Unfortunately, SOL took a nosedive, declining to as low as $96 before recouping some of its losses to this level. According to analysts, the asset could return to its bullish ways once the much-anticipated SOL Exchange Traded Fund (ETF) launches in the US.
With that, Bloomberg Intelligence ETF analysts have hinted that the ones filed by Franklin Templeton and VanEck have a 75% chance of approval this year. Also, the prediction platform Polymarket has fixed the odds of approval at 82%.
Amidst the backdrop of this, Canadian authorities have taken the first step to approve multiple SOL ETFs, which are expected to start trading this week. This, coupled with the potential approval in the US, could significantly drive institutional interest to a new height, as explained in our previous news brief. According to our recent analysis, SOL could then make an early move to hit $1000.
Recommended for you:
Credit: Source link
