Solana (SOL), the fifth-largest cryptocurrency in the industry, saw a notable recovery over the weekend, in line with the broader market rally and the price of Bitcoin (BTC). Rebound towards $63,000 level Mark for the first time in over a week.
SOL price has managed to recover from the losses of the past few months, surpassing the $150 level and overcoming major resistance walls, alongside an optimistic statement from Daniel Cheung, co-founder of hedge fund Syncracy Capital, who believes that SOL is showing similar fractal patterns reminiscent of Q3 2021, which could lead to explosive gains.
More gains await SOL
in Posted on social media On Sunday, Cheung expressed his bullish view on SOL’s price action as the token closed last week on a bullish note, drawing comparisons to Q3 2021, where SOL’s price began its rally from a low of $27 at the end of July that year, eventually reaching an all-time high of $259 in November 2021.
Cheung also drew parallels to Q4 2020, highlighting that in both cases, more significant returns are on the horizon, suggesting more Price gains The coming period is expected to witness important events in the second half of the year, as was the case in 2021.
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Cheung also emphasized that Solana is expected to remain a center of on-chain activity throughout the rest of this market cycle due to its accessibility to retail investors, making it an attractive asset.
Possible introduction of Solana Exchange Traded Fund (ETF), which is expected to have a significant impact on the price of SOL, along with the increasing likelihood of Trump’s re-election, is acting as additional fuel for the Solana ecosystem, according to the co-founder of Syncracy Capital.
Solana Market Cap Forecast
On an interesting note, Daniel Cheung also mentioned that he believes the Solana ecosystem could “probably” reach 50% of Ethereum’s market cap this cycle as optimism around the blockchain grows.
Currently, Solana has a market cap of $71 billion, which is significantly lower than Ethereum’s $403 billion. However, according to Cheung’s analysis, if SOL reaches 50% of Ethereum market capIf SOL and SOL merge, their market cap will reach $280 billion, which will lead to a massive surge in the price of SOL and push it to new record levels.
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It remains to be seen whether this latter scenario will materialize, with expectations of a more favorable regulatory framework in the US, with the possibility of new legislation for the industry with Trump’s victory in the November elections and the possible passage of the expected Solana Act. Exchange Traded Funds Market.
However, Solana stock is trading at $152 at the time of writing, which represents a 6% gain in a 24-hour time frame and a massive 438% rise since the beginning of the year.
Featured image by DALL-E, chart by TradingView.com
