- Trader Jacob Canfield identifies a target of $1000 per SOL.
- The reasons are weekly breakouts followed by a strong ecosystem.
- Cathie Wood and VanEck also have bullish views on Solana.
Solana has been a star in the crypto market owing to the rise in price is saw Crypto trader Jacob Canfield, in a series of tweets, provided a lot of reasons why Solana is deeply undervalued.
The reasons he stated were, Solana’s Dominance, SOLBTC and SOLETH breakouts. He also mentioned a list of top projects which are expected to contribute.
Analysis by Jacob Canfield
Crypto trader Jacob Canfield has provided a lot of reasons why Solana is deeply undervalued. He expects SOL to cross $1000 by the end of this crypto market cycle which is generally thought to be four years long.
The last cycle ended in late 2022 and early 2023 when Bitcoin broke out from $16,000 levels and reached $30,000 in a couple of months.
Weekly Resistance Breakout
As per Jacob, SOL-BTC is breaking out of a weekly resistance. In the below image, we can confirm that the SOL is very near to breaking out at the resistance of 0.00185 BTC (1 BTC price x 0.00148 = $69). Here, Bitcoin is the denominator of the pair, so SOL’s price is expressed in terms of Bitcoin.
Another pair, SOL-ETH recently broke out of a weekly resistance, signaling that Solana would move faster than Ethereum in terms of price. If we take a look at weekly charts of SOL-ETH, we can notice that for the first time since May 2022 (start of the crypto winter), SOL price might cross 0.00185 ETH (1 ETH price x 0.0344 = $68.9). This was the breakout point. See the chart below.
Generally, after a breakout a crypto price moves faster. Since, the breakout has been in a weekly chart, the rally period is expected to be in months. This could be a reason why SOL price might remain bullish for the coming months.
Solana’s Ecosystem Vital in $1000 Target
Another potential reason for a large Solana rally, albeit in the long term is that Solana has one of the most well-developed ecosystems in the world of crypto.
Jacob lists the following prominent projects that would help boost crypto prices.
- Orca, a decentralized exchange on Solana and Raydium might merge together.
- $BONK and $SAMO memecoins.
- Shadow and Render Token, NFT storage solutions.
- $FIDA a token which provides similar service as Ethereum Naming Service.
- Mad Lads NFT, Yoots NFT, Boogle, and Solana Money Business are top NFTs as per Jacob.
- Pyth Network, a blockchain oracle for Sol Blockchain.
- Mango Markets, a perpetual DEX
There are 10 more type of projects which the trader thinks are highly useful.
Solana Predictions by Cathie Wood and VanEck
Cathie Wood has been known for her lofty Bitcoin targets. She has predicted that Solana would grow much faster than Ethereum because of Solana’s blockchain efficiency, cost-effective transactions.
Despite ETF delays, sluggish crypto markets, and failing businesses, Wood is positive about SOL’s dominance in the current market.
VanEck on the other hand has predicted $3.2k per SOL by the end of the decade. It thinks that Solana would be the first blockchain to successfully onboard 100 million users. It also praises the blockchain’s high speed which currently processes 65k transactions per second with a theoretical capacity of 100k transactions per second.
But Be Careful
Even if everything that has been claimed materializes, it would still take Solana several years to cross $1000. Neither Jacob, nor Cathie or VanEck claim that SOL’s price would dramatically rise overnight.
The best way to benefit from such trend is through learning and thorough investigation, both of which Voice of Crypto helps you with.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.