Solana Analysis

Solana gains over 26% in two days — $250 SOL price target next?

October 21, 2021 Coin Telegraph

Solana gains over 26% in two days — 0 SOL price target next?

bitcoin etf

Solana's latest price rally comes in the wake of new Bitcoin all-time highs above $65,000.

Solana (SOL) rallied higher on Oct. 21 as traders shifted focus from Bitcoin (BTC) to the most promising altcoins.

Notably, the price of SOL increased by more than 11% to over $196 a token, the highest level since Sept.11. Combined with the gains recorded in the previous 36 hours, SOL was up by as much as 26%.

*SOL/USD daily price chart. Source: TradingView*

Capital rotation in play?

A new Bitcoin all-time high price on Wednesday triggered price rallies across the altcoin market as well.

For instance, Ethereum's native token Ether (ETH) posted better intraday profits Wednesday, closing 7.32% higher around $4,170. Today, the second-largest cryptocurrency rallied further to $4,374, just $10 shy of its record high at $4,384 on Coinbase.

Conversely, Bitcoin corrected by more than 3.5% to below $65,000. As a result, the ETH/BTC exchange surged by more than 5% to reach an intraday high of 0.06289 BTC.

Similarly, SOL's performance against the U.S. dollar in the last two days came out better than Bitcoin. That prompted SOL/BTC to climb by more than 8% Thursday to hit 0.0026772 BTC, showing that traders rotated capital out of the Bitcoin market to enter the Solana market.

*SOL/BTC daily price chart. Source: TradingView*

Bullish pennant triggered

Solana's latest price rally also appeared as a bullish breakout out of its multi-month consolidation channel.

SOL started consolidating sideways inside a Triangle-like trading range after rallying by more than 200% in the August-September period. As a result, the formation of more than two higher lows and lower highs, coupled with a declining trade volume, raised the prospect of the channel being a Pennant.

Since Pennant is typically a trend continuation indicator, their formation on the Solana chart after a massive price rally raised its prospects of sending SOL prices higher. Thus, the breakout from Wednesday now eyes an extended run-up, with its target sitting at length equal to the size of the previous uptrend.

*SOL/USD daily price chart featuring Bullish Pennant. Source: TradingView*

In other words, the price target for Solana could be as high as $250 before the end of the month. However, a retest of the Pennant's upper trendline as support would risk invalidating the bullish setup.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Better call SOL: Month-long consolidation puts Solana price en route to $275

October 15, 2021 Coin Telegraph

Better call SOL: Month-long consolidation puts Solana price en route to 5

Coin Telegraph

SOL has been forming a Bull Pennant following its 14,200% year-to-date price rally.

Solana (SOL) price technicals suggest SOL can hit $275 in the coming sessions.

The upside outlook for the world's sixth-largest cryptocurrency by market capitalization comes as it consolidates inside a range that appears like a Bull Pennant.

In detail, Bull Pennants are bullish continuation indicators that form as the price consolidates inside a Symmetrical Triangle-like structure following a strong move upside.

The consolidation trend accompanies declining volumes, reflecting on the trend's underlying weakness.

And, as the price approached the apex—the point where the Pennant's trendlines converge, it tends to undergo a breakout to the upside, with the bull target at length equal to the height of the previous uptrend, i.e., Flagpole.

*SOL/USDT daily price chart featuring bull pennant setup. Source: TradingView*

Solana's flagpole height is roughly $125. That said, a breakout move at the Pennant's apex (at around $150) puts SOL en route to $275.

SOL/BTC pair also gains despite Bitcoin at $60K

Solana's prospects of hitting $275 come amid an overall price boom across the crypto market.

However, SOL price also rallied by 8% against Bitcoin (BTC) in the past two days in part due to its listing o South Korea's top crypto exchange Upbit.

Overall, SOL has been one of the best performing altcoins in 2021, with its year-to-date profits at 8,500%. SOL traded at a record high of $216 in early September.

Institutional inflows boost SOL price

Despite Bitcoin currently in the limelight, Solana's price likely also received a boost from institutional capital via dedicated investment funds, according to a report from CoinShares published earlier this week.

"Digital asset investment products saw inflows 500 totaling US$226 million, bringing the 8 week run of inflows to US$638 million," CoinShares noted, adding:

"It was a mixed picture in other altcoins with recent favorites Solana (US$12.5 million) and Cardano (US$3 million) continuing to see inflows, suggesting the focus hasn’t entirely switched to Bitcoin.

*Institutional inflows into crypto funds by asset. Source: CoinShares, Bloomberg*

Solana chart ‘bull flag’ eyes $250 despite SOL price down 40% since last week

September 17, 2021 Coin Telegraph

<div>Solana chart 'bull flag' eyes 0 despite SOL price down 40% since last week</div>

Coin Telegraph

Meanwhile, the SOL's latest downside move forms a classic bullish continuation structure, with a profit target above $250.

Solana (SOL) price extended its slide on Sept. 17 as a major network outage over the past week — pointing to heightened security risks — hit traders' confidence.

The SOL/USD exchange rate fell up to 13.27% to its intraday low of $133.53 in a corrective trend that began after it topped out near $221.38 on Sept 9. As a result, SOL's price has almost crashed by 40% since its all-time high last week, despite more than tripling their value in the past 30 days.

Outage hurts SOL price

Solana backers tout its layer-1 blockchain solutions as a direct competitor to Ethereum. That is mainly due to its potential to ensure higher speed and lower transactions costs than the world's leading smart contracts platform.

However, on Sept. 14, Solana suffered a denial-of-service disruption, wherein a spike in transaction load — of up to 400,000 per second — overwhelmed its network. As a result, Solana's mainnet beta suffered 18-hours of instability, forcing decentralized applications (dApps) working atop its blockchain to become unusable.

1/ Solana Mainnet Beta encountered a large increase in transaction load which peaked at 400,000 TPS. These transactions flooded the transaction processing queue, and lack of prioritization of network-critical messaging caused the network to start forking.
— Solana Status (@SolanaStatus) September 14, 2021

The root cause of the issue was reportedly a decentralized exchange, Raydium. On it, bots attempted to buy SOL tokens and, as a result, flooded the network with up to 400,000 transactions per second. On the other hand, Solana validators failed to prioritize transactions, causing a chain split.

SOL/USD rates fell up to 19.17% to $137.15 on Sept. 14, only to rebound sharply later to close the day at a 6.47% loss. Nonetheless, the sell-off continued in the next sessions, driven by fears that Solana is more centralized than its top rival Ethereum.

Gavin Wood, the co-founder of Ethereum and another rival blockchain network Polkadot, pointed that Solana functions with an "exclusive and closed set of servers," which somewhat increases its network's speed but comes at the cost of lower decentralization.

The comments appeared as Ethereum successfully withstood against the same attack.

Lol, WTF is going on today? $sol goes offline for a few hours#arbitrum goes down for almost an hour#ethereum got attacked (unsuccessfully)
— Lark Davis (@TheCryptoLark) September 15, 2021

In a tweet issued Thursday, Solana promised to take more proactive steps against potential hacking attempts. The foundation also announced that it would publish a "detailed post-mortem" analysis in the coming weeks.

Bull flag e

SOL/USD expects to resume its prevailing bullish momentum despite the price correction as it paints a classic technical structure with an upside outlook.

Dubbed Bull Flag, the pattern forms when the price consolidate lower in a descending channel (FLAG) following a strong move upward (FLAGPOLE). Ultimately, the price breaks above the channel's upper trendline, typically rising by as much as the Flagpole's height.

*SOL/USD four-hour price chart featuring Bull Flag pattern. Source: TradingView.com*

Solana's recent price action has led it to form a similar Bull Flag pattern. As a result, its next attempt to break above the Channel's upper trendline could lead its price as high as the flagpole's height, which comes to be around $107.

As a result, SOL/USD could reach $250.

SOL price nears $200 after FTX’s Solana-enabled NFT marketplace goes live

September 7, 2021 Coin Telegraph

SOL price nears 0 after FTX’s Solana-enabled NFT marketplace goes live

Altcoin

The latest bout of buying has pushed SOL/USD’s quarter-to-date gains up by more than 450%.

Solana (SOL) bulls have largely ignored its overvaluation risks as the blockchain asset goes after another milestone price level.

The SOL/USD exchange rate almost reached $200 on Tuesday as investors continued to treat Solana as a long-term competitor to Ethereum, the world’s leading smart contracts platform.

More bullish evidence came on Monday after Sam Bankman-Fried, CEO of crypto derivatives platform FTX, announced Solana’s integration into FTX’s upcoming nonfungible token (NFT) marketplace.

On Monday, Bankman-Fried revealed that the new marketplace would enable NFT creators and owners to trade their digital arts cross-chain using Solana and Ethereum. The platform would also make it possible to trade NFT collections from rivaling marketplace OpenSea on FTX.

The NFT marketplace went live on Monday and is hosted by FTX.US, a United States-regulated cryptocurrency exchange backed by FTX. That enables United States users to mint and trade NFTs via FTX.

NFT boom behind Solana rally

NFTs exist on blockchains, the public ledger technology that keeps track of who owns the digital assets. Therefore, performing tasks such as minting an NFT token or processing digital asset transactions entail a fee.

Most NFT-related transactions take place on Ethereum, even though the network suffers from higher congestion and inflated gas fees. Data fetched by EtherScan shows that Ethereum’s gas fees reached their highest levels since May last week.

“As NFT activity commands ecosystem attention, gas prices have risen to daily levels that price out many retail traders,” Luke Posey, a researcher at blockchain analytics firm Glassnode, wrote in a note on Wednesday.

*Ethereum gas fees (in Gwei) in the last three months. Source: YCharts*

Solana’s public base-layer blockchain protocol proposes to do away with Ethereum’s performance bottlenecks. In addition, its lowered gas fees have made it an emerging player in the NFT industry, backed by the launch of dedicated digital collectibles marketplaces such as Solanart, DigitalEyes and its integration into music streaming platform Audius.

Major players in the crypto space have recognized Solana’s potential against Ethereum. In June, Bankman-Fried-backed Alameda Research led a $314-million funding round for Solana, which was also funded by venture capital firm Andreessen Horowitz, Polychain Capital and CoinShares.

SOL to $500?

Greg Waisman, co-founder and chief operation officer of payment network Mercuryo, envisioned exponential growth for the Solana ecosystem based on its growing adoption among the decentralized finance (DeFi) and NFT space.

He believes Solana’s boom is similar to Ethereum and Binance Smart Chain, adding that it would boost SOL/USD exchange rate to as high as $500 in the second half of 2021. He said:

“Solana is potentially a $500 digital coin, and the price growth of Solana in recent times points to the capacity of the token to receive enough boost to hit this mark before the end of H2 2021.”

On the flip side, analysts at JPMorgan Chase warned clients about overvaluation risks in the altcoin and NFT space, stating that the recent rally is “more likely to be a reflection of froth and retail investor ‘mania’ rather than a reflection of a structural uptrend.”

On Tuesday, SOL/USD’s quarter-to-date returns reached a little over 450% as it established its all-time high at $196.78. Since then, the pair has already pulled back as traders take profits.

SOL burn? Solana price hits $100 for the first time after mysterious ‘Ignition’ event revealed

August 30, 2021 Coin Telegraph

<div>SOL burn? Solana price hits 0 for the first time after mysterious 'Ignition' event revealed</div>

Coin Telegraph

Traders push their SOL/USD bids higher after Solana teases the community with "ignition," a mysterious feature that will go live on Aug. 31.

Solana (SOL) prices rose on Aug. 30 as traders speculated on what appeared to be a key but mysterious feature launch later this week.

The SOL/USD exchange rate climbed to a new record high of $103.06 following a 9.35% intraday rally. The upside move surfaced days after Solana introduced "Ignition" on their official media handles. However, the team provided little details about the tool but prompted the community to guess that it would be about burning SOL tokens.

The speculation surfaced majorly because of Solana's Ignition teaser video, which featured a purple flamed lighter.

burn...
— #A_freak_show_to_freaks (@JustDafong) August 27, 2021

Ignition might not be a SOL token burning event

As a public blockchain, Solana relies on SOL to aid two primary tasks: Staking and Transaction Fee. The protocol burns a portion of the transaction fees it collects to keep the SOL supply limited against its 500,000,000 SOL issuance.

However, Solana also creates new tokens based on a "dis-inflationary inflation schedule," wherein the SOL issuance rate decreases periodically after starting at its highest value. Meanwhile, Solana claims that the supply would eventually stabilize at a "predetermined long-term inflation rate."

But if Ignition is a token burn event, it should not deserve a dedicated landing page on the official Solana website. That is primarily because of the protocol's previous SOL burning events that did not see specialized teasers from the Solana team.

Moreover, the Ignition teaser comes with a caption that reads, "The sky’s the limit. What will you launch," with a period Aug.t 31 - Oct. 8, underlining that it could be more an event for decentralized app developers or non-fungible tokens (NFT) creators, and less a token burning episode.

*Snapshot from Solana's official Reddit community page concerning Ignition. Source: Reddit*

But overall, traders appear to have found Ignition as a catalyst to keep their SOL bids higher. On the day of the announcement, which was Friday last week, the SOL/USD exchange rate jumped 17.62%. The next day, the pair climbed another 9.2%.

Nonetheless, the rally slowed down on Sunday just ahead of hitting the $100-mark, falling over 1.5%. But it resumed the upside heading into the new week, claiming $100 as top digital assets, including Bitcoin (BTC) and Ether (ETH), dropped.

*SOL/USD daily chart. Source: TradingView.com*

SOL later dropped back below $100 on profit-taking sentiment.

Overvaluation risks persist

The Solana prices earlier started rallying in the wake of an overall crypto rebound after Bitcoin bottomed out below $30,000 on July 20. Later, SOL/USD picked additional upside momentum on a flurry of optimistic fundamentals, including digital asset manager Osprey Fund's decision to launch a Solana-dedicated fund for institutional investors.

Last week, real-time data feeder Pyth Network announced going live on Solana's proof-of-stake blockchain via its cross-chain communication tool, dubbed Wormhole.

And before that, Solana also forayed successfully in the NFT sector mid-August with the launch of Degenerate Apes—the project sold out 10,000 pictures of comic apes in just eight minutes and raked in 96,000 SOL in volumes (over $5.9 million at that time).

On the flip side, Solana's 369% price boom from its July 20 low of $21.96 turned SOL excessively overvalued, as per its current relative strength index reading (near 81). That amounted to a short-term correction in the sessions ahead.

Capital rotation in play?

Bullish pennant triggered

SOL/BTC pair also gains despite Bitcoin at $60K

Institutional inflows boost SOL price

Outage hurts SOL price

Bull flag e

NFT boom behind Solana rally

SOL to $500?

Ignition might not be a SOL token burning event

Overvaluation risks persist

Share this video