Solana (SOL), the fifth-largest cryptocurrency in the industry, saw a notable surge over the weekend, in line with the broader market rally and Bitcoin (BTC). Back towards $63,000 This is the first time in more than a week.
SOL price has successfully recovered from the losses of the past few months, surpassing the $150 level and overcoming key resistance walls, accompanied by optimistic statements from hedge fund Syncracy Capital co-founder Daniel Cheung, who believes SOL is exhibiting a similar fractal pattern reminiscent of the third quarter of 2021, potentially leading to explosive gains.
SOL expects further gains
one of social media posts On Sunday, Cheung expressed his bullish outlook on SOL’s price action as the token closed last week on a bullish note, while also drawing comparisons to the third quarter of 2021, of which SOL’s price began to rise from a low of $27 in late July that year, eventually reaching its current all-time high of $259 in November 2021.
Cheung also drew similarities with the fourth quarter of 2020, explaining that in both cases, the most significant returns were just around the corner, suggesting this will be the case going forward. net profits Such programmes are proposed in the last six months of the year, as was the case in 2021.
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Cheung further stressed that Solana is expected to remain the center of on-chain activity for the rest of this market cycle due to its accessibility to retail investors, making it an attractive asset.
Potential Introduction of Solana exchange traded fund (ETF), which is expected to have a substantial impact on SOL’s price, and the growing possibility of Trump being re-elected, act as additional fuel for the Solana ecosystem, the Syncracy Capital co-founder said.
Solana market cap projection
In an interesting observation, Daniel Cheung also said that he believes the Solana ecosystem could reach 50% of Ethereum’s market capitalization in this cycle as optimism around the blockchain grows.
Currently, Solana's market cap is $71 billion, which is significantly lower than Ethereum's $403 billion. Still, according to Cheung's analysis, if SOL reaches 50% Market Capitalization of EthereumIts market capitalization will reach $280 billion, causing the price of SOL to rise sharply and reach new all-time highs.
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It remains to be seen whether this latter scenario will play out, with expectations of a more favourable regulatory framework in the US, the possibility of new legislation for the industry with a Trump win in the November election and the potential approval of Solana anticipated The ETF Market,
Nevertheless, Solana is trading at $152 at the time of writing, up over 6% on a 24-hour timeframe and a significant 438% year-to-date.
Featured image via DALL-E, chart via TradingView.com
