Solana Cryptocurrency is currently trading at a very modest $44. On Binance the all time-high for Solana was $259.90. So far we have corrected 85% from the all time-high.
Typically an 85-95% correction is quite normal for altcoins. Especially following the extreme-greed and euphoria phase of a bull market. The extreme fear we see today presents a strong reaccumulating opportunity for a long-term investment strategy.
With that in mind it is important to know that Solana can still correct further. My buy-zones for Solana are set between $20-29. Should Bitcoin capitulate to the 200 week moving average, this is the likely bottom we would see for Solana.
This would result in a total correction size of 92% for Solana, suggesting that we could be at the bottom. Considering Solana is ranked #9 on Coinmarketcap and has a market capital of $15.6b, this makes me feel quite bullish.
The above chart shows that Solana is in a macro-downtrend. We have continuously been through lower-highs on our price action. On the 12th of May following the Terra Luna Crypto Crash we bounced at a key support level of $37. This is the green support line on the chart above.
Should we lose this level of support this is where we could go down to my buy-zone at around $20-29.
If Bitcoin does get a bounce to around $38,000 we should see a breakout to the upside for Solana and a lot of thrill in the market.
My technical target for this would be a bounce to the yellow diagonal resistance trendline between $75.6 and 87.5 (0.382 and 0.5 Fibonacci levels) assuming that $37 is our local bottom.
Solana price history and Fib Ext levels – daily chart
The Fibonacci extension levels below display where we are likely to see resistance, so we can see these as our take profit targets.
Using the previous local swing high of $138 we can clearly see what the next price targets are.
- 0.236 Fib – $61.8.
- 0.382 Fib – $75.6.
- 0.5 Fib – $87.5
Cryptoassets are a highly volatile unregulated investment product.
Solana Price Prediction 2022
Solana is now trading at lows we had seen last year between April and May of 2021. We then saw Solana explode over 420%. Let’s have a look at some technical analysis and see what is likely to happen in the future for Solana.
The relative strength index bottomed out at 12.4 for Solana on the 13th May 2022 and we have now bounced back up to 32.1 which could reflect that Solana is gathering momentum we are now consolidating.
If Solana can break through the 0.5 Fibonacci extension level at $87.5 I think we would likely see continuation to the upside and begin our journey back to the $100 level.
Solana Price Prediction 2023-2024
Solana has definitely earned it’s position of rank #9 on Coinmarketcap as it is one of the most robust decentralized finance (DeFi) solutions across the market. SOL has a vision to make decentralized finance more accessible on a greater scale. This makes it a very attractive asset for investors.
The above chart displays the Fibonacci extension tool at the all-time high to current market cycle bottom. We could assume that the realistic targets for 2024 would be as listed below.
- 1.272 Fib – $319.61
- 1.414 Fib – $351.10
- 1.618 – $396.36
Reaching our 1.618 Fibonacci price target after a long supply and accumulation phase is quite normal for cryptocurrencies when the bear markets flip back into bull markets.
If Solana reaches the $319 price target we would see around a 9x from this particular price level, which would give us a market capital of around $120-140b depending on supply in circulation. The market capital for Solana is currently $15.6b. This allows plenty of room for growth in the future.
Considering the previous all time high for the market capital was $78.8b (set on the 11th June 2021) I think this is quite a realistic target and would yield around 887% return on investment with a solid long-term portfolio strategy.
Solana is a project I do believe will grow in the future through mass adoption and network usage. Being one of our large-cap projects, Solana has cash reserves to fund marketing, protocol upgrades and developments even in the bear markets.
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