Solana (SOL) is the second-best performing cryptocurrency within the high 100 by market capitalization on Thursday, having gained a powerful greater than 7% on the session to hit its highest stage since July above $25.
The cryptocurrency’s newest pump, which has seen it rally over 45% from its September lows underneath $17.50, has seen it reclaim a market cap of greater than $10 billion.
Within the course of, SOL, the cryptocurrency that powers the high-performance smart-contract-enabled layer-1 Solana blockchain, has overtaken the market caps of rivals Dogecoin (DOGE) and Cardano (ADA) to rank as the seventh largest cryptocurrency by market cap.
The cryptocurrency collapsed to as low as $8 per token, marking a greater than 95% pullback from its all-time excessive value round $260 again in 2021 on the time following the collapse of ill-fated crypto exchange FTX.
Ex-FTX CEO Sam Bankman-Fried had been a significant advocate for Solana, and his now failed hedge fund Alameda had been a significant liquidity supplier inside Solana’s Decentralized Finance (DeFi) ecosystem, therefore the spectacular lack of confidence within the cryptocurrency following FTX’s demise.
However Solana has made a miraculous comeback in 2023.
Not solely is its value (final simply above $25) up over 200% from final yr’s lows, however its ecosystem has seen a powerful rebound in liquidity this yr.
As per DeFi Llama, the entire worth of crypto locked in Solana-based good contracts stays in an uptrend and, at $1.1 billion, has greater than doubled for the reason that begin of the yr.
Price Prediction – The place Subsequent for Solana (SOL)?
The newest bounce in Solana possible has extra to do with optimism about upcoming spot Bitcoin ETFs than is does to do with any Solana-specific catalysts.
With Solana’s 2023 uptrend nonetheless strongly intact, if the cryptocurrency can break above resistance within the $24-25 space on a sustained foundation, the door ought to be open for a quick run larger in the direction of a yearly excessive above $32.
That might imply fast and straightforward good points within the area of 27%.
Time to Purchase SOL?
Solana’s robust bounce from its 200DMA earlier this month counsel it’s the bulls strongly retain an higher hand.
And amid plenty of causes to be optimistic about Solana’s long-term adoption prospects, analysts are getting extra bullish on the cryptocurrency.
In a current video by nameless YouTube channel InvestAnswers, the host advised his 447,000 viewers that he “sees quite a lot of completely different tailwinds for Solana”, earlier than itemizing Solana Pay, which was lately built-in into Shopify and the newly launched Solana cellphone referred to as Saga and its related decentralized app retailer.
InvestAnswers additionally famous Solana’s value effectivity, scalability, nice tokenomics and its current Visa partnership as different the explanation why it is positioned to carry out nicely within the coming years.
For these causes, fashionable crypto analyst and dealer DCA Crypto predicted in a video launched on Thursday that Solana (SOL) will break its all-time highs at $250-260 and doubtlessly even get as excessive as $400 within the upcoming bull market.
That may mark good points of as a lot as 16x versus Solana’s present value at simply over $25.
If DCA Crypto is appropriate, now could be a good time to purchase SOL.
DCA Crypto famous that he plans to take a considerable quantity of revenue forward of the $250-400 zone being hit, nonetheless, to be sure that he is in revenue.