Solana (SOL), a decentralized finance (DeFi) platform, is predicted to surge to over $4,000 according to an analysis by trading expert TradingShot. The expert’s forecast is based on examining Solana’s price movements and noting its bullish trend. While Solana has undergone a correction phase since its peak in March 2024 following a significant rally in 2023, the correction appears to be less severe now. The Relative Strength Index (RSI) and the one-week moving average (MA50) provide support and indicate an opportune entry point for investors.
The analysts explored Solana’s historical performance to determine its potential price trajectory. During the previous cycle, Solana experienced a 1,250% rise from the inception of the current long-term Fibonacci channel up. If Solana replicates this growth from the recent bear cycle bottom, it could peak slightly above $4,000. Solana has already surged by 2,500% up to its March high, so reaching $4,000 would represent an approximately 1,900% increase from March. This milestone would position Solana in close proximity to established peers like Ethereum.
Achieving a valuation of $4,000 would be a significant accomplishment for Solana, putting its market cap at approximately $1.825 trillion. This capitalization would surpass Bitcoin’s current market cap of $1.3 trillion. However, it is important to note that Bitcoin’s price movement can influence the overall market trajectory.
In the short term, Solana has reached a critical support level at $141, as indicated by the TD Sequential buy signal. This suggests a potential rebound for the cryptocurrency. If the support holds, Solana could experience a recovery lasting from one to four daily candlesticks.
As of now, Solana is trading at $145.66, having gained about 1.2% in the last 24 hours. The token has corrected by almost 9% on the weekly chart. It’s important to remember that investing in cryptocurrencies carries risks and any investment decisions should be made with caution.