• Crypto & Funx
• 18 Aug, 2024

Solana surged 35% to $222, its highest price since December 2021, with TVL reaching $7.82 billion.

SOL broke the $200 resistance level and is currently trading 15.6% below its 2021 peak.

Daily trading volume increased by 25%, supporting bullish trends and forecasts of up to $1,000.

Solana recently achieved a notable price breakout, paving the way for a substantial rally. As of November 12, 2020, SOL trades at $220, reflecting a 4% rise within the past day. Solana ranks 4rth among the top ten cryptocurrencies by market capitalization in terms of performance. Experts express optimism, forecasting the layer one (L1) blockchain’s value to increase by potentially up to 900%.

Earlier, on November 5, SOL emerged from a 234-day consolidation phase alongside ’s electoral success. Subsequently, Solana’s price climbed by 14% over the following week, reaching $224. This upward trajectory allowed Solana to surpass the persistent $190-$200 resistance range, a barrier for nearly seven months.

Solana Set for Major Rally, Eyes $1,000 Milestone

SOL currently trades approximately 15.60% below its highest-recorded price on November 7, 2021. Analysts anticipate a rise to $1,000 by the cycle’s end. During the 2021 bull market, Solana’s value surged by 900% after a 117-day consolidation period. If similar trends emerge, the cryptocurrency could exceed $1,000 and approach $1,900.

Source: TradingView

Recent forecasts reveal a strong upward trajectory for Solana, breaking through the crucial $180–$200 supply range. This breakthrough signals sustained bullish momentum, particularly if SOL maintains a position above $200. A powerful bullish candle, combined with elevated trading volumes, highlights active buying.

Crucial resistance points include the 0.27 extension at $260 and the 0.618 extension at $330, which may impede Solana’s continued ascent. Surpassing these levels, SOL has the potential to climb to $400, a significant psychological barrier. Conversely, should a decline occur, the previous $180–$200 resistance zone is expected to offer robust support, laying the foundation for a rebound.

Solana’s latest breakout involved a substantial trading volume reinforcing the bullish trend’s legitimacy. Additionally, the formation of a large multi-year bull pennant suggests the upward trend will persist. Factors like Trump’s presidency and Canary Capital’s application for a Solana ETF further enhance the prospects of a significant rally reaching $1,000 and beyond.

Solana Reaches Highest Level Since 2021

Between November 5 and November 11, SOL surged by 35%, reaching $222 — the highest level since December 2021. This impressive movement has led traders to speculate whether the all-time high of $260 is attainable, especially as Bitcoin surpassed $88,500, driven by steady institutional inflows and anticipated regulatory clarity in the United States.

SOL has outperformed the broader altcoin market, which saw a 33% increase over the same six-day period. Investor optimism is partly fueled by the expansion in Solana’s smart contract activity, evidenced by the total value locked (TVL). By November 12, Solana’s TVL had escalated to $7.82 billion, the highest since December 2021, to DefiLlama.

However, some criticism remains regarding Solana’s heavy reliance on meme coins such as Dogwifhat , Bonk , and Popcat , each surpassing the $1.5 billion market capitalization mark. Decentralized token launch platforms like Pump.fun have been primary drivers behind the increase in Solana’s decentralized exchange (DEX) volumes.