As the crypto market sell-off intensifies, one analyst believes that Solana price is due for a strong rebound, citing its performance in 2021. His thesis comes as the SOL price remains in a bear market after falling by almost 60% from its highest level this year.
Solana Price Could Surge to $4,000
SOL price has been in a strong downward trend after peaking at $295 earlier as its meme coins were soaring. Recently, it has not been left behind in the ongoing crypto sell-off as it has crashed to $125. This drop has led to a $64 billion wipeout as its market cap has slipped from $124 billion to $63 billion.
One crypto analyst has identified a similarity between Solana’s price action in late 2020 and early 2021. At the time, the coin slipped from around $2.5 in November and bottomed at $1.1 in December. It then staged a strong comeback to over $56 by May 2021 as most crypto prices surged.
Solana price has had a similar performance this year as it plunged from $295 in January to near $100 today. After bottoming during the ongoing shakeout, the analyst expects the coin to almost double from here and get to $200, and then go parabolic to $4,000 by August this year. Such a move would imply a 3,100% surge from the current level.
Solana has a market cap of over $63 billion, meaning that a surge to $4,000 would give it a market cap of over $2.38 trillion. While these parabolic moves are possible in the crypto industry, there are chances that his SOL price forecast is highly optimistic.
SOL Price Technical Analysis: Key Support Needs to Hold
The weekly chart shows that the Solana price has been in a steep downward trend after peaking at $294.75 in January to about $120. It has retreated below the key support at $169.05, the neckline of the double-top pattern, one of the most popular bearish signs in the market.
One positive for Solana is that it has crashed to a crucial support where it has failed to move below at least five times since 2024. This price also coincides with the 61.8% Fibonacci Retracement level or the golden ratio, where rebounds tend to happen.
On top of this, Solana price has become oversold as the Stochastic RSI has moved to 3.60. The last time it dropped to this level was in September last year, and the coin bounced back afterward.
Therefore, there is a likelihood that the SOL price will bounce back in the coming days, with the next level to watch being at $170, up by about 45% from the current level.
A drop below the support at $120 will invalidate the bullish view, and point to further downside, potentially to the 78.6% retracement at $68.
The post If Solana Price Repeats 2021 Pattern, SOL Could Not Only Cross $200, but Hit $4,000 appeared first on CoinGape.
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