The Bitcoin price has reached a six-figure figure, reaching the $100,000 mark that was predicted well before the 2021 bull run. Meanwhile, most of the tokens in the top 10 cryptos, such as ETH, XRP, ADA, and DOGE, have yet to mark a new ATH. Although Solana managed to reach new highs, it was barely a few dollars above the previous one. Therefore, market participants believe that these tokens have more room to rise and hence the upper target for Solana is expected to be much above $500.
SOL, the fifth largest token, has grown in popularity due to increasing trading activity on the Solana chain. The increase in DEX volumes, spot trading volume, launch of new projects in the chain, etc. shed light on the bullish outlook. Currently, SOL price is stuck in a descending parallel channel and has just staged a recovery from lower support. With an 8% jump, SOL price is about to secure the level above $230.
Does this mean the price could continue a steep rise and mark a new ATH $300 before the end of 2024?
The long-term price action of the SOL price suggests that the token is poised for a bearish setback in the near future. The token broke a new ATH but failed to break the resistance zone between $251.54 and $265.09, resulting in a pullback of almost $200. Meanwhile, the bulls have resuqued, but the bears appear to have kept a firm grip on the rally. Therefore, the token could be poised for an extended pullback that could push levels below $200.
The RSI showed a bearish divergence before entering overbought territory, while the MACD suggests a decline in buying volume. Moreover, the levels could undergo a bearish crossover in a short time, confirming a move towards ascending support. Furthermore, volume remains within a decent level, which is expected to maintain the token’s volatility.
A popular asset management company, Bitwise, which deals in spot BTC & ETH ETFs, has predicted that they will join Bitcoin, Ethereum and Solana to form a new ATH. Highs for BTC are said to be around $200,000, ETH at $7000 and SOL at $750. While demand for a new ATH of $1000 is making a huge splash, reaching $750 could be fair play from the 2024 close bullish, marking a new ATH above $275. Otherwise, Solana price is expected to remain within extended accumulation for a long time.