Key Insights:
Solana could reach $267, followed by $300 after a breakout above $245.
Strong fundamental reasons like the memecoin supercycle, US Crypto Stockpile, and high user engagement rate support SOL's growth.
Further, a 2-year-wide cup and handle pattern on SOL's charts indicates a potential surge to $4000.
Solana is the same blockchain that was used by Donald Trump's official memecoin.
Solana 4-H Charts
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Solana has been moving in a very narrow channel of $20, with a width between $245 and $265, for the last 6 days. This channel has been preventing Solana from falling severely but is also blocking its rally.
Presently, this channel is extremely unstable and could yield a breakout on the upside. This expectation of a rally is based on recent whale acquisitions and ETF approval rumors.
Further, there has been a decent surge in the memecoin markets which lifts Solana's revenue.
Finally, a breakdown is less likely because of SOL Futures' listing on the CME (discussed later).
Solana is currently under the influence of a positive crossover, which could help it break out of the $245 level and induce a small recovery of up to $267 within a short time, say a couple of days.
A sustained positive crossover could help it overcome the critical resistance in the $285 to $296 zone.
Despite a rejection from the levels of 53, the RSI on Solana's 4H charts indicates that they might recover soon. The RSI has taken support around the level of 50, which could lead to an increase in SOL's price momentum.
Solana was expected to cross $300 in the Q1 without the ETF and futures listing.
As expected, SOL reached $296 on 19 Jan 2025. However, it could not sustain higher levels due to profit booking.
A breakout from $245 could push SOL towards $267 and eventually $300. A move beyond $300 could materialize after its ETF approval and listing on CME Futures (discussed later).
In the long term, we expect Solana to move beyond $1000 and eventually $4000 easily. The $1000 price target is based on recent fundamental developments and price charts. The $4000 target is based on forming a two-year-wide cup and handle pattern on Solana's charts.
Top chart analyst Ali Martinez expects SOL to move above $4000 levels, probably by the next Bitcoin Halving.
Solana is one of the few altcoins that enjoy a very high degree of user usage. This high utility rate then transfers into a high revenue as individual fees from small users add up.
All memecoins are currently undergoing a bullish phase called the memecoin supercycle. This cycle has resulted in memecoins outperforming all other market sectors like RWA, AI, and DeFi.
Experts assume this supercycle will last longer and end only by mid-2025. Also, according to many analysts like Ali Martinez, the most bullish phase is yet to happen, taking top memecoins like DOGE in a 12000% rally.
Further, with the recent success of Donald Trump's $TRUMP memecoin, we can expect further such listings. $TRUMP was launched using Pump.Fun.
Solana could easily find a spot in the US National Digital Assets Stockpile, which was created with a working group headed by David Sacks. The working group is expected to submit a report by mid-2025, 180 days after its formation.
Solana has a very high chance of finding its position in the stockpile because of its central role in memecoin markets.
Solana ETFs could further boost the price of SOL with consistent inflows similar to those of Bitcoin. A reason why SOL ETFs could be far more popular than Ethereum ETFs is because of memecoins.
Solana Futures are also to be listed on the CME exchange which could provide liquidity to the spot markets. This liquidity could lift spot prices because in many cases, the settlement of futures contracts takes place with actual SOL tokens.
The trading of these SOL tokens generates additional fees, pumping Solana higher.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but 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.