Can Solana (SOL) Hit $500 in 2024? Exploring the Possibilities

• The price fluctuations of Solana have been quite dramatic since its inception.
• As one of the rapidly emerging crypto assets, Solana has attracted the attention of traders and investors due to its ultra-fast transaction speeds and its unique proof-of-history (PoH) method.

Solana has successfully positioned itself alongside Ethereum and surpasses it in several respects, including lower transaction fees while handling a massive volume of token production each day.

What can we expect for the future of this crypto asset? This article will delve into Solana’s anticipated price movement in the upcoming years.

• As of now, Solana’s price is $135.65.
• Current market sentiment for Solana, according to Blockzeit indicators, appears to be mixed.

Review of Solana Coin and Network

Solana is a blockchain aimed at widespread adoption, characterized by its speed, composability, environmental sustainability, and global distribution. As reported by Solscan, the network currently processes 3,133 transactions per second (TPS) along with 873 true TPS, operating with just 1,433 validators.

This number is significantly lower when compared to Ethereum’s more than 800,000 validators, resulting in a comparatively less decentralized network.

Despite this, Solana excels in active user engagement, boasting 3.096 million daily active users, while Ethereum has only 442,000.

With over 80% (467,929,971.99 SOL) of its total supply in circulation, Solana is one of the most widely distributed Layer 1 blockchains in the crypto ecosystem. Furthermore, 383,426,863.55 SOL are currently staked, representing 99.1% of the circulating supply—staking locks tokens away from circulation, enhancing scarcity and driving up demand.

Reasons Why Solana’s Price May Rise

Several factors contribute to Solana’s growing popularity:

• The network is exceptionally fast, processing over 3,000 TPS and 600 true TPS.
• Solana’s transaction costs are low, which attracts a significant user base.
• The network hosts user-friendly decentralized applications (dApps) that are easy to navigate.
• Solana has positioned itself as a hub for meme coins, drawing in investment.
• More than 99% of all SOL in circulation is staked, bolstering demand and pricing for the asset.
• Development efforts on Solana continue to thrive.

Reasons Why Solana’s Price May Fall

While Solana’s surge in popularity has propelled its price from below $20 to over $180 in 2024, there are drawbacks that investors should consider before investing in Solana-based projects:

• Bots frequently exploit and front-run users due to slippage.
• Transactions occasionally fail without adequate slippage, with users still incurring costs for these failed attempts.
• FTX intends to liquidate $7.5 billion worth of SOL.
• The blockchain has experienced at least 12 significant outages to date.
• Becoming a validator necessitates considerable financial resources.
• Solana’s circulating supply is inflationary, increasing by 59.09 million in the past year, effectively adding $8.5 billion worth into circulation.

Technical Analysis of Solana (SOL) Price

The current price of Solana, as of September 12, 2024, is $135.65, with a market capitalization of $63,526,687,181.

On the weekly chart, a bullish pennant is forming following a robust upward surge from the lows of 2022. This pattern typically indicates a continuation of the previous bullish trend. A breakout above the upper boundary could result in a significant upward movement.

Support and Resistance Levels

The lower edge of the triangle provides strong support in the range of $100–$110, while the upper edge is around $160. A breakout above this level could facilitate a continuation of the preceding bullish trend.

Analysis of weekly candlesticks shows consolidation without any notable bearish reversal patterns, enhancing the potential for a bullish breakout from this triangle. The candlesticks have been forming higher lows, which signals bullish momentum.

Volume analysis reveals significant spikes during the upward rally, with diminishing volume during consolidation. This volume behavior often supports a potential breakout when the price approaches the triangle’s apex.

It’s typical for volume to decline during the formation of the symmetrical triangle (pennant). An increase in volume accompanying the breakout as the price nears the apex will be essential to validate the move upwards.

Recommendations for Long-Term & Short-Term Trading

• A breakout above $160 will confirm a bullish continuation, and traders should look for an uptick in volume to validate this breakout.
• A stop-loss placed below the $110 support level will assist in managing risks in the event of a downturn.
• Based on the triangle’s measured potential (height of the pattern), upside targets could range between $350-$360 if the breakout is validated.
• For long-term investors: The symmetrical triangle (pennant) could represent the final consolidation phase before a robust rally. A breakout could signal a long-term trend toward previous all-time highs near $350-$400.

Price Prediction for Solana (SOL) in 2024

The term ‘Solana ETF’ is currently generating excitement within the crypto community. Many enthusiasts were thrilled to learn about VanEck’s filing for a Solana ETF.

However, the SEC and CBOE have postponed the Solana ETF’s progress over concerns regarding Solana’s classification as a security. Subsequent discussions resulted in their decision not to submit the necessary 19b-4 filings to initiate the approval process.

The likelihood of Solana ETFs being approved under the present administration appears low, with experts speculating that it might not occur until 2025, if at all.

Should the ETF be approved, analysts predict Solana’s market capitalization could rise to between $170 billion and $220 billion, indicating a price range of $370 to $440. In an optimistic scenario, if Solana performs similarly to platforms like the Ton blockchain, its price could reach $1,000 by the end of 2024.

This evaluation provides a framework for understanding Solana’s prospective price path, equipping investors with insights to make informed investment decisions.

Conclusion

Solana is a significant player in the decentralized finance sector. With numerous billion-dollar decentralized protocols operating on its network, Solana’s diverse features influence its price predictions, encompassing various technical and on-chain indicators as well as strategic advancements and institutional adoption. The overall outlook for Solana indicates a coin poised for a promising future.