Recently, the price of Solana (SOL) experienced a downturn to around US$150, but several popular analysts believe in its bullish potential, even in the short term.
The crypto's price has struggled to maintain its upward momentum, succumbing to selling pressure after approaching the US$160-163 zone. This zone previously acted as support but has now turned into a resistance area, further complicated by the presence of the DMA50 at the same level.
Macro-Economic Factors and Regulation
According to a CryptoNews report, despite recent setbacks, SOL still recorded a substantial increase of over 25 percent compared to its lowest price last week.
This increase is largely driven by weaker-than-expected US job data, which shifted market sentiment and raised expectations for a Fed interest rate cut later this year. Apart from favorable macroeconomic conditions, positive inflows into Bitcoin ETFs have also supported the broader crypto market, including SOL.
However, these positive developments are somewhat hindered by a lack of updated regulations in the US, particularly with the Securities and Exchange Commission (SEC) issuing a Wells Notice to the popular trading platform Robinhood.
SOL Price Predictions
Currently, SOL's price fluctuates in the US$120-160 trading range, indicating a consolidation period after recent volatile movements. Nevertheless, traders and analysts remain optimistic about this crypto's future prospects.
Some traders predict a significant price increase in SOL. A prominent trader and analyst known as ATradeSniper on TradingView has suggested that Solana is poised for a 40 percent rally in the short term. This prediction is based on technical analysis indicating that SOL has broken out of a Falling Wedge pattern, which typically signals upward potential.
Market Sentiment and Ecosystem Growth
This bullish sentiment is supported by other traders and analysts. MancBTC, a well-known figure in the crypto analysis community, has commented that SOL has the most bullish chart after BTC at the moment.
This statement reflects growing confidence among investors and analysts in Solana's market position.
Further reinforcing this optimistic view, Solana has maintained its volume-weighted average price (VWAP). This indicator is often used to assess the average price paid per unit over a specific timeframe and is a positive sign for Solana's price stability and growth potential. Additionally, the broader ecosystem around Solana, including various decentralized applications (dApps) and blockchain-based projects, continues to show strong growth and interaction. This strength attracts more users and developers to the platform, further increasing demand for SOL.
MancBTC, another respected analyst in the crypto space, also believes that Solana is poised for another significant price movement. He forecasts a 40 percent increase that could see SOL surpass the US$200 mark once again.