Solana price falls as one ‘giga bull’ sees it rising to $500

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As a seasoned cryptocurrency analyst with over a decade of experience observing market trends, I must admit that the recent dip in Solana (SOL) prices has piqued my interest more than usual. Having witnessed several bull and bear markets, I’ve learned to read between the lines when it comes to price movements and technical patterns.

Solana price dropped into a local bear market as the crypto sell-off intensified this week.

Currently, Solana (SOL), the fifth-largest digital currency in circulation, has witnessed a 20% drop since reaching its peak this year. This decline has resulted in a reduced market capitalization, now standing at approximately $102 billion.

The drop in fortunes occurred at the same time as a wider slump affecting its environment. Notable meme coins such as Dogwhate, Bonk, Popcat, and Peanut the Squirrel experienced a dip of more than 20% within the past day. The combined market value of meme coins associated with SOL now stands at approximately $17.7 billion.

Solana’s retreat also mirrored declines in other layer-1 and layer-2 cryptocurrencies like Avalanche, Ethereum, Arbitrum, and BNB. Historically, cryptocurrencies have demonstrated a strong correlation with one another during market shifts.

Thus, the main query among many financial experts and investors revolves around whether this is merely a short-term downturn or the commencement of another prolonged market decline (bull to bear market transition).

In a recent post on X, crypto analyst McKenna – who boasts more than 93,000 followers – expressed strong optimism towards Solana by labeling himself a “Solana megabull.” He anticipates that the coin could potentially reach $500. His bullish sentiment is rooted in the developing cup and handle pattern he observes on the monthly chart.

I am now a Solana giga bull.

Permission to send this to $500 with haste.$SOL

— McKenna (@Crypto_McKenna) December 9, 2024

Jelle, a well-known crypto expert, highlighted the same pattern on the weekly graph and forecasted that it could potentially surge towards $600. This potential increase, starting from the current price, represents an approximately 2-fold rise.

In simpler terms, among the cryptocurrencies, Solana stands out with its robust foundations. It’s particularly popular with developers who are creating meme tokens and various other decentralized applications (dApps). This year, the network has amassed approximately $660 million in transaction fees alone.

On Solana’s platform, an astounding $8 billion is securely stored, with its stablecoin transactions surpassing $24.8 billion. Moreover, Solana stands out as the dominant chain for decentralized exchanges, boasting a 30-day trading volume of more than $151 billion—almost twice Ethereum’s figure.

Solana price point to more gains

Over the recent weeks, the weekly graph indicates a significant decline in SOL, reaching a crucial support point at $206 – marking the upper limit of a minor cup-and-handle structure. This downtrend could imply that Solana might be shaping up to complete the handle part of a more extensive cup-and-handle pattern.

The depth of the cup measures approximately 97%. Based on this pattern—a bullish continuation signal—there is a possibility that SOL could climb to $520. This target is about 97% above the cup’s upper boundary at $263.

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2024-12-10 19:34