Solana is one of the top performers in the top 10, looking at the performance over the last year of trading. After plunging to around $8 after the collapse of FTX, prices went on to recover steadily throughout 2023 before rising to as high as $210 in March 2024.
Is SOL Ready For The “Mania-Like Stage”?
While SOL prices are cooling off at spot rates, retracting from this week’s highs, some analysts are confident. Taking to X, one analyst believes the coin is within a breakout formation after clearing above a re-accumulation structure. For what’s there, SOL, the analyst added, is “ripe to push higher.”
If bulls flow back, reversing recent weakness, Solana could easily glide higher, entering what the analyst described as a “mania-like stage.” Looking at the SOL candlestick arrangement, the analyst predicts that SOL will rip higher, breaking above the all-time highs of around $260 recorded in 2021.
Afterwards, the coin is highly likely to scale out aggressively. By the trader’s estimation, Solana can quickly rally to as high as $600 if buyers take over.
Still, only time will tell whether Solana Bulls have what it takes. From the SOLUSDT chart, the coin gained nearly 40% after sinking to as low as $122 in July 2024. There is a double top at around $190, though more obstacles lie at around the $200 to $210 resistance zone.
Technically, SOL is within a bullish formation. If prices stay above $160, the resulting momentum could propel the coin above the immediate liquidation zone, spurring more demand.
Solana Finds Rapid Adoption, Flips Ethereum In Key Metrics
Possible drivers would be fundamental factors, especially in the adoption and regulatory development fronts. Increasingly, more meme coin projects are launching on Solana, taking advantage of the platform’s high throughput and low fees.
The proliferation of meme coins on the modern blockchain has also pushed DEX activity higher, challenging, and, in some instances, surpassing those posted on Ethereum. By the end of last week, Solana, one analyst observed, surpassed Ethereum in total gas fees and maximum extractable value (MEV) tips.
Despite these impressive metrics, BlackRock is hesitant to embrace SOL and launch spot ETFs in the coming days. A BlackRock executive said the company’s current focus is on spot Bitcoin and Ethereum ETFs since they align with their investment criteria.
Feature image from DALLE, chart from TradingView