Solana (SOL) Set for Major Rally, Eyes $1000 Milestone

SOL currently trades approximately 15.60% below its highest-recorded price on November 7, 2021. Analysts anticipate a rise to $1,000 by the cycle's end.

Solana (SOL) price recently experienced a notable breakout, setting the stage for a potential large rally.

At the time of writing — November 12, 2023 — SOL trades at $220, showcasing a 4% price increase over the last 24 hours. Solana ranks 4th among the top ten cryptocurrencies by market capitalization in terms of performance.

However, the breakout has sparked optimism among experts, who forecast the layer one (L1) blockchain to increase in value by up to 900%.

But how did Solana manage to achieve this breakout, and what factors could contribute to the anticipated rally? Let’s delve deeper into the analysis.

Solana priceチャート的技术分析output

Solana last emerged from a 234-day consolidation phase on November 5, coinciding with Donald Trump’s electoral success. Afterward, Solana price rose by 14% over the following week, reaching $224. This upward trajectory allowed Solana to finally break out of the persistent $190-$200 resistance range, which the cryptocurrency had been attempting to overcome for nearly seven months.

Solana is currently trading approximately 15.60% below its highest-recorded price on November 7, 2021. However, analysts anticipate a rise to $1,000 by the end of the cycle. During the 2021 bull market, Solana’s value surged by 900% after a 117-day consolidation period. If similar trends emerge, the cryptocurrency could exceed $1,000 and approach $1,900.

Solana price analysis: Key price levels to watchoutput

Recent forecasts reveal a strong upward trajectory for Solana, breaking through the crucial $180–$200 supply range. This breakout signals sustained bullish momentum, particularly if SOL maintains a position above $200. A powerful bullish candle, combined with elevated trading volumes, highlights active buying.

Crucial resistance points include the 0.27 extension at $260 and the 0.618 extension at $330, which may impede Solana’s continued ascent. Surpassing these levels, SOL has the potential to climb to $400, a significant psychological barrier. Conversely, should a decline occur, the previous $180–$200 resistance zone is expected to offer robust support, laying the foundation for a rebound.

Solana price analysis: Factors contributing to the breakoutoutput

Solana’s latest breakout can be attributed to several factors, including a substantial trading volume, reinforcing the bullish trend’s legitimacy. Additionally, the formation of a large multi-year bull pennant suggests the upward trend will persist.

Moreover, factors like Trump’s presidency and Canary Capital’s application for a Solana ETF are further enhancing the prospects of a significant rally to $1,000 and beyond.

Solana price analysis: Key upcoming resistance levelsoutput

Solana price reached its highest level since December 2021, surging by 35% between November 5 and November 11 to reach $222. This impressive movement has led traders to speculate whether the all-time high of $260 is achievable, especially as Bitcoin price also surged past $88,500, driven by steady institutional inflows and anticipated regulatory clarity in the United States.

Solana price analysis: Altcoin performanceoutput

SOL outperformed the broader altcoin market, which saw a 33% increase over the same six-day period. This divergence is partly due to the strong uptick in Solana smart contract activity, as indicated by the total value locked (TVL).

According to DefiLlama, Solana TVL rose to $7.82 billion by November 12, the highest it has been since December 2021. However, it’s worth noting that meme coins like Dogwifhat (WIF), Bonk (BONK) and Popcat (POPCAT) all surpassed the $1.5 billion market capitalization threshold.

Furthermore, decentralized token launch platforms, such as Pump.fun, were the primary drivers behind the increase in Solana decentralized exchange (DEX) volumes.