As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull runs and bear markets. The current surge in Solana (SOL) has piqued my interest, and I must admit, it’s reminiscent of some of the early days of Bitcoin.
As a researcher examining the dynamic world of blockchain networks, I’ve noticed an intriguing development: Solana (SOL) appears to be making significant strides in its quest to establish itself as the leading Layer 1 network, following closely behind Bitcoin. The price of SOL has been skyrocketing compared to most other cryptocurrencies, even surpassing its previous record against Ether ($ETH). This raises the question: Could this trend of encroaching upon Ethereum‘s market share persist?
$SOL looks to break the macro downtrend
Similar to Bitcoin ($BTC), Solana ($SOL) has been in a period of sideways and downward movement since mid-March this year, with occasional significant corrections followed by sharp increases as it moves horizontally.
In contrast, while Bitcoin ($BTC) has consistently formed lower peaks and troughs, Solana’s ($SOL) price broke its pattern of lower highs at the end of July with a peak of $193. Now, it’s up to the Solana bulls to establish a new high followed by a new higher low, thereby setting the stage for an upward trend.
$SOL breaks out on short time frame
In the short-term perspective, it’s noticeable that the Solana ($SOL) price has recently shattered its previous downtrend. Yet, a retest to affirm the break is yet to occur. If the price manages to maintain itself above this trend line on a daily basis, there’s a possibility that the price might continue moving upwards.
SOL/ETH pair makes new all-time high
Conversely, while $ETH has been relatively stable, it’s $SOL that has shown significant growth among the leading layer 1 cryptocurrencies. Since December 2023, $SOL had been confined within a range with its $ETH pair for 229 days before making a breakout. This current price level also surpasses the previous SOL/ETH all-time high.
Following a significant surge in its price, it’s possible that the price of Solana ($SOL) might retreat to validate the peak of its price range. Should this happen and the validation is confirmed, anticipate Solana to climb further, potentially entering a new SOL/ETH pricing phase.
SOL/ETH price targets
Forecasted high prices for Solana ($SOL) relative to Ethereum ($ETH) could reach approximately 0.09 ETH based on the 1.618 Fibonacci extension, and potentially even 0.14 ETH according to the 2.618 extension.
The current Ethereum market value is approximately 4.1 times larger than Solana’s. However, this difference has been shrinking rapidly. If the trend continues, there’s a possibility that Solana could overtake Ethereum in terms of market capitalization during the next bull market cycle. Which cryptocurrency do you think will be the winner?
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2024-08-08 17:15