Solana price predictions are becoming more bullish with SOL having bounced back up above the key psychologically important $100 level.
The SOL price has twice bounced from support around $85 since the start of 2024, suggesting strong dip-buying by the bulls.
The cryptocurrency has been struggling since hitting multi-year highs above $125 in December.
That’s because many traders have aggressively been taking profit following the cryptocurrency’s powerful rally since September.
SOL hit lows in the $17s in September and has since pumped around 475% thanks to a broader spot Bitcoin ETF fuelled crypto market rally, but also amid renewed interest in strong use case boasting and high potential Ethereum layer-1 blockchain alternatives.
Speculators flocked to the Solana blockchain in late 2023 amid frenzied meme coin trading and airdrop hunting.
This sent Solana-based meme coins like Bonk (BONK) surging and triggered an explosion of on-chain activity.
Data presented by The Block shows that network activity has since cooled off somewhat, giving traders more reason to take profit on their SOL gains.
SOL has also formed a descending triangle, which typically forms ahead of bearish breakouts.
A break below $85 support could thus see a quick retest of resistance-turned-support in the $65 area.
Solana (SOL) price chart / Source: TradingView
But Solana could well head back to new yearly highs next.
Spot Bitcoin ETF hype has built this week amid expectations the SEC will give the green light by Wednesday.
This could trigger a sudden surge in crypto market risk appetite, sending high beta coins like SOL skyrocketing.
If SOL breaks its downtrend from the December highs, a pump to April 2022 highs in the $140s could be next.
Solana (SOL) price chart / Source: TradingView
Solana Price Prediction – Can SOL Reach $1,000 in 2024?
Longer-term Solana price predictions remain positive given most think we are in the early stages of a new crypto bull market.
Solana’s market cap is currently around $43 billion, as per CoinMarketCap.
And at $100, SOL remains around 60% lower versus its record highs back in 2021 around $260.
Assuming the broader crypto market keeps pumping in 2024 and the likes of Bitcoin (BTC) and Ether
(ETH) head back to record highs in the $69,000 and $4,900 areas respectively, a retest of its all-time highs is very possible for Solana in 2024.
A 160% gain to hit $260 would see Solana’s market cap swell to over $110 billion.
For the SOL price to 10x to $1,000, that would require the market cap to pump above $400 billion, around 44% of Bitcoin’s current market cap.
For $400 billion to be a fair price for Solana, its network will need to see substantial further adoption.
It’s unlikely that adoption can be achieved on a time horizon as short as the next 12 months, meaning a SOL price of $1,000 this year probably won’t happen.
But Solana boasts amazing transaction speeds and low fees that position it as a serious contender to Ethereum.
Its web3 ecosystem will continue to grow rapidly.
Rather than asking if SOL will reach $1,000, a better question is probably to ask when.
Meme Coin Alternative to Consider – $SPONGEV2
One such meme coin that could offer much higher upside prospects that Solana in 2024 is Sponge V2.
Sponge V2 ($SPONGEV2) is the reincarnation of the legendary Spongebob Squarepants-themed $SPONGE token, which reached a market cap of nearly $100 million earlier in 2023 and delivered gains to its earlier investors in the region of 100x.
$SPONGE token holders will be able to stake their tokens to receive an equivalent amount of $SPONGEV2 tokens, as well as to start earning staking rewards (paid out in $SPONGEV2) with a minimum APY of 40%.
$SPONGEV2’s main advantage over $SPONGE is that it will power a new play-to-earn game, the details of which are yet to be released.
But we do know that there will be a free version and paid version of the game.
The post Solana Price Prediction as SOL Bounces Back Up Above $100 – Can SOL Reach $1,000 in 2024? appeared first on Cryptonews.