Solana (SOL) is a popular smart contracts token among retail and institutional investors. The token has a history of major price movements backed by key developments in the ecosystem. Solana price frequently experiences major breakouts but also falls victim to high volatility.
This article will delve into the technical outlook of Solana in the second quarter of 2024—micro and macro factors that are likely to trigger a major bull run to $250 and beyond.
Meanwhile, Solana price dodders at $148 after growing 5% on the day on top of a 15% increase in seven days. SOL ranks #5 among other cryptocurrencies backed by a $68 million market cap. In the last 24 hours, this very competitive smart contract token commanded over $2 billion in trading volume.
Can Solana Price Uphold The Bullish Outlook to $250?
Solana is top among major altcoins with the spot ETF in sight. This extremely bullish outlook emerged last week after investment firm VanEck applied for a license to operate a Solana spot exchange-traded fund.
VanEck reckoned in the accompanying statement that it believes Solana is a commodity just like Bitcoin and Ethereum. The protocol is known to host decentralized applications, supporting the web3 sector.
Solana’s blockchain stands out for secure high transaction throughput, low fees, scalability, and adaptability. Although very similar to Ethereum, Solana boasts 50,000 transactions per second at an average of $0.00025.
If the Securities and Exchange Commission (SEC) approves Solana ETFs, the token will gain more legitimacy among investors both crypto and traditional, especially from institutions.
In the previous bull run in 2021, Solana exploded to $260—reaching a new all-time high. The run-up fuelled by the approval of Bitcoin ETFs in Q1 propelled SOL to $206. This came after a drastic and damaging fall to $8 caused by the crypto winter and the collapse of Sam Bankman-Fried’s FTX exchange.
Despite the correction in April, May, and June, Solana shows potential to recover and push above the crucial $200 mark. Subsequent movements to $250 and beyond would depend on the general sentiment, especially if the crypto market ignites a bull run later in the year.
Solana Gearing Up For A Big Breakout
According to the current technical picture on the daily chart, Solana holds between the 20-day Exponential Moving Average (EMA) and the 50-day EMA. The neutral Relative Strength Index (RSI) at 52 reinforced the bullish thesis such that SOL seems poised to push past the $150 resistance on Monday, July 1.
Solana price chart | Tradingview
Should SOL breach this hurdle, FOMO will likely kick in as more traders back the uptrend while getting into new buy positions. Breaching the next seller congestion at $160 could push Solana above the descending triangle.
This is technically a bearish pattern but if bulls manage to overpower the sellers’ grip, Solana price prediction reveals a quick climb to $200, paving the way for the upswing to $250.
Frequently Asked Questions (FAQs)
Yes. Like Ethereum, Solana is a layer 1 blockchain as it hosts other decentralized applications.
The Solana blockchain boasts 50,000 transactions per second.
No. But VanEck recently applied to the SEC seeking to operate a Solana ETF.
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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
