- A renowned analyst has predicted that Solana (SOL) could hit $4000 but would first reach $400 by Christmas.
- Another analyst has estimated that the asset would reach between $400 and $600 following the formation of a Cup and Handle Pattern.
Solana (SOL) declined to a monthly low of $203 after hitting a new all-time high of $263 on November 23, 2024. At press time, the asset was fast recovering as it surged by almost 1% to hit $219, extending its monthly gain to 6.40%. Fascinatingly, analyst Ali Martinez believes that the “bullish cycle is still young.”
Analyzing Martinez’s Prediction
According to Martinez, SOL could hit $4000 in this cycle. Analyzing his supporting thesis, we found that the analyst’s estimation was based on the formation of a “Cup and Handle pattern.” The realization of this bold prediction could be a staggering 20x from the current position. This would also demand that the market capitalization reaches $2 trillion. Regardless, Martinez expects the asset to ascend to $600 in the initial level after reaching $400 by Christmas.
Analyst IncomeSharks also identified a similar pattern on December 2 and cautioned investors of an impending retracement. However, he also hinted that the asset was approaching a Supertrend support, which had been held since October.
When SOL was still embarking on its bearish reversal, an analyst identified as Altcoin Sherpa disclosed that the asset was on the verge of bottoming, but the process could be violent and demand time. Even so, he highlighted that investors who buy at those levels would be rewarded.
Later, SOL staged a bullish reversal, hinting that it might have bottomed at the $203 level. Confirming its bullish outlook, a CryptoQuant analyst has also disclosed that SOL is one of the many altcoins that could hit a fresh all-time high price, as suggested by the heatmap below.
Jelle Estimates $600 for Solana (SOL)
According to renowned trader Jelle, SOL would certainly hit between $400 and $600.
SOL broke its previous ATH and now forms a falling wedge right on top of the 25-day EMA. Also retesting RSI midlevel. Looks ready to resume price discovery soon. My targets: $400-600.
Meanwhile, Solana’s on-chain activities have been strongly supporting its upsurge for the last couple of months. Earlier, Glassnode data disclosed that the transfer volume had reached a new all-time high price of $318 billion, while the active addresses had also surged to 22 million on November 16.
While the transfer volume moved to a record high within the time frame, the mean and median transaction volume decreased sharply. Fascinatingly, this coincided with the Decentralized Exchange (DEX) volume. Weeks before that, the DEX volume had surged to $41.2 billion. This represents a more than 100% surge from the previous high of $17.5 billion recorded in March.
Solana’s impressive on-chain activities could also be traced to September when CNF reported that its Daily Active Address (DAA) had risen threefold to reach 3.11 million on September 11. According to Artemis Terminal data, Solana’s DAA recorded a high of 5.4 million on September 9. Comparatively, the DAA reached 4.6 million on September 6, declined to 4 million on September 7, and 2.8 million on September 8.