In recent weeks, Solana (SOL), the 5th largest cryptocurrency on the market, experienced a period of decline, hitting a two-month low of $121 on Friday. The coin’s value struggled to break above the $188 level in May, resulting in a continuous downtrend further exacerbated over the past seven days with the general market’s correction.
However, crypto analyst Jelle has sparked optimism by suggesting the potential for substantial gains for SOL in the coming months, reminiscent of the fabled “Solana Summer” of 2021.
Analyst Draws Parallels To 2021’s “Solana Summer”
Jelle took to social media to share an analysis of SOL’s price action, drawing parallels between its current behavior and the events of the summer of 2021. The analyst noted months of consolidation, characterized by lower highs while maintaining support above the $120 level.
Jelle emphasized that SOL is rebounding from the weekly Relative Strength Index (RSI) midlevel, mirroring the pattern observed in July 2021. Encouraged by these similarities, Jelle boldly believed in Solana’s future, setting a target of $600 for this market cycle.
During the Solana Summer of 2021, the price of SOL more than tripled between July and November. The coin’s market capitalization grew significantly from a pre-summer low of $10 billion to an impressive high of $63 billion by the end of the year, eventually leading the SOL’s price to its current all-time high of $259.
Jelle’s optimistic outlook implies the potential for even greater gains this time. A surge from the current trading price of $141 to $600 would represent a remarkable 352% increase, surpassing the coin’s current value.
Nevertheless, Solana faces immediate resistance just above its current trading price at $143, a formidable barrier that has proven challenging for the token over the past six days.
The subsequent targets are the 200-day Exponential Moving Average (EMA) and the $150 resistance level. The 200-day EMA has served as a crucial support level for the token over the past six months, contributing to its price appreciation in the first quarter of this year, reaching a yearly high of $210 on March 18.
Regaining the 200-day EMA would be imperative for Solana Bulls, as it would position the token to target and surpass its next obstacle at $170.
Market Cap Sees Double-Digit Decline
Delving into key financial metrics to gauge Solana’s blockchain performance and price correlation, Token Terminal data shows that Solana’s fully diluted market capitalization is $80.78 billion. However, this figure represents a decline of 11.9% over the past 30 days.
The circulating market capitalization of Solana, which considers the number of tokens actively trading in the market, currently amounts to $64.54 billion. Like the fully diluted market cap, this metric has experienced an 11.4% decrease in value over the past 30 days, along with SOL’s price.
However, despite the recent market dip, Solana’s token trading volume over the past 30 days has remained relatively stable, with a trading volume of $77.37 billion, indicating continued interest from bullish investors.
Featured image from DALL-E, chart from TradingView.com
Ronaldo Marquez
Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.
Ronaldo’s journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.
Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.
One of Ronaldo’s defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.
Ronaldo’s commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo’s writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.
Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.
However, Ronaldo’s aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.
Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.
With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
