In recent weeks, Solana (SOL), the fifth-largest cryptocurrency on the market, has been on a downward spiral, hitting a two-month low of $121 on Friday. The coin struggled to break above $188 in May, leading to a sustained decline. Downtrend Things have gotten even worse over the past seven days with the general market correction.
However, crypto analyst Jelly has sparked optimism by pointing out the potential for significant gains for SOL in the coming months, reminiscent of the legendary “Solana Summer” in 2021.
Analyst compares ‘Solana Summer’ to 2021
Jilly took to social media to share analysis Analysis of SOL price action, drawing parallels between its current behavior and the events of the summer of 2021. The analyst pointed to months of consolidation, marked by lower highs while maintaining support above the $120 level.
Jelly confirmed that SOL is recovering from the average level of the weekly Relative Strength Index (RSI), reflecting the pattern observed in July 2021. Thanks to these similarities, Jelly boldly believes in Solana’s future, setting a target of $600 for this. Market cycle.
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During the Solana Summer of 2021, the price of SOL more than tripled between July and November. The market cap of the coin grew dramatically from its pre-summer low of $10 billion to its high of $63 billion by the end of the year, ultimately leading the price of SOL to its current level. All time high From $259.
The bullish predictions made by Jelly suggest that even bigger gains could be made this time around. A rise from the current trading price of $141 to $600 would represent a significant increase of 352%, which is well above the current value of the coin.
However, Solana faces immediate resistance above its current trading price of $143, a formidable barrier that has proven to be a challenge for the coin over the past six days.
The next targets are the 200-day exponential moving average (EMA) and the $150 resistance level. 200 day exponential moving average The BTC price has been a crucial support level for the token over the past six months, contributing to its price surge in the first quarter of this year, reaching a yearly high of $210 on March 18.
Reclaiming the 200-day EMA will be essential for Solana bulls, as it will put the token in a position to target and surpass the next hurdle at $170.
Market cap sees double-digit decline
By delving into key financial metrics to measure Solana blockchain performance and price correlation, Token Terminal Data The chart shows that Solana’s fully diluted market cap is $80.78 billion. However, this figure represents a decrease of 11.9% over the past 30 days.
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Solana’s circulating market cap, which takes into account the number of tokens actively traded on the market, currently stands at $64.54 billion. Like the fully diluted market cap, this metric has seen an 11.4% decline in value over the past 30 days, along with Solana’s price.
However, despite the recent market decline, the Solana token Trading volume Over the past 30 days, the Saudi stock market has remained relatively stable, with a trading volume of $77.37 billion, indicating continued interest from bullish investors.
Featured image by DALL-E, chart by TradingView.com