According to independent market analyst Hansolar, Solana (SOL) is poised for a bull run in the current crypto market boom, driven by Bitcoin (BTC). Hansolar argues that Solana has the potential to replicate the price trends of Ether (ETH) during previous market bull runs. For example, during the 2020-2021 cycle, ETH’s price surged from around $85 to as high as $4,935, following Bitcoin’s upward trend.
Hansolar points out that ETH’s uptrend increased by approximately 1,400% after Bitcoin reached a new record high above $20,000. This pattern could repeat in 2024 if Bitcoin continues its extended bull run above its November 2021 record high of $69,000. Hansolar believes that this time, Solana could benefit equally when Bitcoin reaches new all-time highs.
Hansolar states, “Previously, ETH took off when BTC actually broke out into ATHs. It’s then when retail buys into SOL as the high beta catch up play.” In other words, when Bitcoin reaches new all-time highs, investors may turn to Solana as a high-risk, high-reward investment opportunity.
If Bitcoin reaches the predicted valuation of $150,000, Solana could target $600 as its long-term upside target. This represents a nearly 450% increase from the current price of SOL.
Fundamentally, Solana has seen strong network adoption recently, with the total value locked (TVL) across its ecosystem reaching 20.51 million SOL, the highest level since January 2023. As more assets are locked into DeFi platforms on Solana, the circulating supply of tokens decreases, potentially leading to an increase in demand and price appreciation.
Solana’s TVL growth aligns with its sustained quarter-over-quarter growth, as tracked by Messari. In Q4/2023, the network saw a 103% increase in average daily fee payers, a 961% increase in average daily DEX volume, and a 359% increase in average daily NFT volume.
The airdrop of Jupiter DEX’s native token, JUP, in Q1/2024 also contributed to on-chain activity on the Solana blockchain. Additionally, NFT volumes reached nearly $5 billion, highlighting strong demand for SOL tokens.
From a technical analysis perspective, Solana is targeting $200 as its primary upside target in the near-term. This is based on the formation of a bullish continuation pattern known as a bull pennant on the daily chart. If the price breaks above the upper trendline of the pennant, it could rise towards $200, a 75% increase from current levels. However, a breakdown below the pennant’s lower trendline could invalidate the bullish setup and potentially lead to a drop towards $60.75, a 45% decrease from current levels.