Solana (SOL) is creating excitement in the cryptocurrency market as technical indicators are giving bullish signals and analysts are predicting a significant price surge. According to World of Charts, SOL has broken out of a previous constraining pattern and successfully retested key support levels, setting itself up for a rise towards the $250 level.
Analysts are highlighting a clear breakout from the descending trend line, a major resistance level that SOL has been battling for months. The breakout signals a shift in market sentiment with buyers taking control and pushing prices higher.
Following the breakout, SOL retested the previous resistance which is now acting as a new support level around $168. This retest is highly significant as it confirms the strength and validity of the breakout and provides a solid foundation for further upside.
As of today, SOL is trading at around $184.62, showing a healthy increase of 4% over the past 24 hours. The open balance, which represents the total number of open derivative contracts, showed a significant increase of 8.49% to $3.02 billion. This indicates growing demand for SOL futures contracts, suggesting that investors are betting on an upward price trajectory.
Solana’s market value soars
Solana’s strong bullish momentum saw it surpass Binance Coin (BNB) and briefly claim the title of the fourth-largest cryptocurrency by market cap. BNB has since reclaimed its position, but the competition remains fierce. As of this writing, Solana has a market cap of $85.8 billion, compared to $90.17 billion for BNB, according to CoinGecko.
Analysts are becoming increasingly bullish on Solana and predicting a significant upside. As mentioned earlier, World of Charts has set a price target of $250, which is a potential upside of about 63.82%. Anonymous trader CryptoBoss boldly predicted that “SOL will hit a new high soon.”
Echoing this sentiment, crypto analyst Ari Martinez expressed a bullish outlook, suggesting that Solana is on track for a stellar performance in 2021. He believes the price could hit a staggering $1,000 in the near future.
Another factor contributing to the bullish sentiment is the possible emergence of a Solana exchange-traded fund (ETF) in 2025. VanEck and 21Shars have submitted an application for a SOL ETF, which, if approved, could significantly boost its popularity among mainstream investors. The success of the recently launched Ethereum ETF could have a similar outcome for Solana, propelling it to new heights in the crypto market.
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