In recent quarters, the surge in on-chain activity within the Solana network indicates a notable increase in demand for SOL tokens. Solana (SOL), currently priced at $113, appears primed for a bullish trend amidst the ongoing cryptocurrency market surge, led by Bitcoin (BTC), which is currently valued at $60,963, according to independent market analyst Hansolar.
Hansolar suggests that SOL has the potential to follow the price trajectory of Ethereum (ETH) during previous bullish cycles. For example, during the 2020-2021 cycle, ETH’s price surged from around $85 to as high as $4,935, mirroring Bitcoin’s upward movement. Notably, ETH’s rally intensified by approximately 1,400% after Bitcoin reached a new all-time high above $20,000.
Drawing parallels to historical patterns, Hansolar argues that Bitcoin’s anticipated surge towards $150,000, as predicted by Tom Lee of Fundstrat, could propel Solana towards a long-term target of $600, marking a nearly 450% increase from its current value.
Analyzing Solana’s fundamentals, the network has demonstrated strong adoption metrics, with its total-value-locked (TVL) reaching 20.51 million SOL, the highest level since January 2023. As more assets are locked in decentralized finance (DeFi) platforms, the scarcity effect could drive up demand for SOL tokens relative to supply, potentially leading to price appreciation.
Furthermore, Solana’s sustained quarter-over-quarter growth, evidenced by significant increases in average daily fee payers, DEX volume, and NFT volume, underscores the network’s robust fundamentals and underlying demand for SOL tokens.
In terms of technical analysis, Solana is currently eyeing $200 as its primary upside target, supported by the formation of a bullish continuation pattern known as a bull pennant on its daily chart. Should SOL break above the upper trendline of the pennant, a potential rally towards $200 could be expected, representing a roughly 75% increase from current levels. Conversely, a breakdown below the pennant’s lower trendline could invalidate the bullish setup, potentially leading to a decline towards $60.75, approximately a 45% decrease from current prices.