Solana May Break $220 For a 6X in Q4 2021
Solana is an activity-dense multipurpose smart contracting blockchain.
By competing with Ethereum and solving pain points, it has emerged as one of the most active platforms.
There are several metrics to gauge its activity levels, and one of them is TVL.
When writing, Solana DeFi dApps manages over $14.4 billion of assets. After the successful Ignition hackathon, the foundation said more projects would be added, increasing TVL.
Solana Market Performance and Price Status
Meanwhile, SOL prices continue to maintain an upward trajectory.
At over $200, the coin is trading at near all-time highs but may surge even more in the days ahead.
At spot levels, the token is adding to their exemplary performance of this year.
To illustrate, SOL is up more than 120X this year alone, effectively becoming one of the top performers with even more upside.
The platform’s utility is without a doubt one of its drivers. Therefore, considering market forces, the more there is demand for SOL, the higher prices are expected to rise, a reason why traders are optimistic about the coin’s prospects.
Thus far, SOL/USDT prices are in consolidation, moving within a tight trade range in the early days of November.
Even so, there are indicators of strength factoring in the fundamental tailwinds.
A complete reversal of October 26 and 27 losses would see SOL surge past $220, continuing an uptrend, cementing buyers’ convictions.
Nonetheless, on the reverse side, a dump below the middle BB and $175 may see SOL drop to October 2021 lows of around $140.
Solana is a Promising Altcoin
On Twitter, one trader holds that the SOL coin is one of the most promising altcoins to hold.
TA of #Solana up until xmas 2021: not inclusive of leverage pos. Intel for holders based on #sol performance of Q3 & the inevitable bullish altcoin season ahead for $solana. Analysis excludes external influence such as media light etc
More of an explanation as a reply;🔥🚀 pic.twitter.com/fFPyFPCePc
— Mikey Crypto #NFT (@MikeyFergus_) November 2, 2021
As per the trader’s prediction, the odds of Solana bulls clearing $220 remain high.
A typical breakout should be with above-average trading volumes signaling participation.
Should this condition be met and traders flow, backing the token, the coin would inevitably surge past the immediate liquidation line towards $260 by the close of the year.
This would once more highlight the coin’s potent and the strength of Solana’s underlying fundamentals.
Solana in a Healthy Correction
As promising as Solana is, one trader thinks SOL prices may correct before uptrend resumption.
The SOL is currently in a healthy correction
— Benjamin Levy (@BenjaLevyy) October 27, 2021
Per the analyst’s approximation, potential support is around $170—below the psychological support at $200.
Once this target is reached—or when the market reaches equilibrium, stemming the bleed–, the uptrend would likely resume.
In that eventuality, SOL bulls would send the coin to new all-time highs at over $220. As per the Fibonacci extension level based on the recent swing high and low, the 1.618 line is at around $340.
Therefore, once there is a break above the all-time highs, there could be more headroom for even more expansion above $300.
SOL Primed for a 6X Rally in Q4 2021?
Perhaps over-ambitious, one trader on Trading View thinks the SOL price will rally 6X to trend above $1k by the end of the year.
Based on the technical candlestick arrangement in the daily chart, the trader picks out the rising channel in which prices are currently moving in.
A continuation of the uptrend, which forces SOL prices above the immediate resistance level at $220, would be the precursor for the move up.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.