Table of Contents
- VanEck’s Forecast For Solana
- Solana Could Narrow Gap With Ethereum
- Potential Price Retraction?
- Popular YouTube Channel InvestAnswers Talks Solana
- Solana Price Action
Solana (SOL) has seen a considerable surge in valuation, capturing the attention of the larger financial world, including asset management firm VanEck.
The recent uptick in the value of Solana has seen the token surge past the $32 mark and even resulted in the popular YouTube channel “InvestAnswers” releasing a video discussing the token.
VanEck’s Forecast For Solana
With the SOL token witnessing a staggering surge, asset management firm VanEck has offered varied price predictions, suggesting the potential for considerable growth in the near future. SOL’s recent uptick has seen the token cross the $32 mark, prompting VanEck to share its projections for the cryptocurrency. The prediction emphasized a range of valuations the token could achieve.
VanEck’s analysis assumes several valuation scenarios for Solana’s price, ranging from a conservative outlook to a more optimistic one. On the conservative end, VanEck’s predicted figure stands at $9.81. However, in a more optimistic scenario, the company places the token’s value at a staggering $3211 by 2030. For context, Ethereum’s projected price within the same period is around $11,800.
“By 2030, our Solana valuation scenarios project a SOL price ranging from a bearish $9.81 to a bullish $3,211.28, anchored by varied market shares and revenue estimations across key sectors.”
If Solana’s valuation increases as VanEck has predicted, it would indicate a staggering growth of over 10,600%. VanEck also speculates a future scenario where Solana could also become the world’s leading blockchain and support applications with a user base that exceeds 100 million.
Solana Could Narrow Gap With Ethereum
VanEck’s analysis also highlights the possibility that Solana could close the gap with its rival, Ethereum, by a significant margin. It also highlights the firm’s interest in cryptocurrencies and the crypto space. VanEck has previously submitted applications for Bitcoin exchange-traded funds (ETFs) with the United States Securities and Exchange Commission (SEC). Solana has seen remarkable growth in 2023, with its valuation increasing by 200% since the beginning of the year. Currently, the Solana ecosystem boasts of a valuation of over $370 million.
Potential Price Retraction?
While Solana has registered staggering growth and is poised to do so in the future as well, the financial markets are ever-changing. There are indications that we could see a potential price retraction for SOL. Data has suggested an upward tick in bearish forces. This necessitates strong bullish reactions to sustain recent gains.
Failure of bullish influences could lead to SOL’s value dropping below the $30 mark. Some analysts have also suggested potential selling positions for traders based on fundamental technical indicators. These indicators have suggested a 15% drop in the value of SOL from current prices.
Popular YouTube Channel InvestAnswers Talks Solana
The host of the popular YouTube channel InvestAnswers, James Mullarney, recently discussed the future of Solana in a video on the channel. The video covered several topics, including market trends, price predictions, and technological advancements in the Solana ecosystem. Mullarney starts the video by providing an overview of the crypto market, noting that the market cap for crypto is just short of $1.3 trillion. He also mentions Bitcoin, which recently broke past the $34,200 mark, and Ethereum, trading around $1790.
Coming to Solana, Mullarney talked about its increasing popularity and performance compared to other cryptocurrencies. He noted that Solana has outperformed even Bitcoin in certain aspects. Mullarney also discussed the VanEck report, with a bear case value of $10 and a bull case of $3211. The host appreciated the thoroughness of VanEck’s analysis, which he noted considered values such as free cash flow to token holders, terminal free cash flow, and fully diluted value.
The video also discussed Solana’s technical capabilities, particularly its high throughput. It also highlighted the upcoming Firedancer validator client, which is expected to increase Solana’s throughput by a factor of 10, giving it a significant advantage over other blockchains. Mullarney also pointed out that Solana has around 19 million fee-paying users who use the chain monthly.
Solana Price Action
Bitcoin is facing considerable opposition at the $35,000 mark. However, altcoins have taken a more optimistic stance. Altcoins such as Solana (SOL) are continuing to sustain the ongoing bullish sentiment. Solana has managed to stay above the $30 mark and is currently trading at $33.87, challenging overhead resistances and entering a potential uptrend. With sentiments around SOL positive, it is no wonder that the Solana price prediction is optimistic about a bullish end to 2023 for the token.
If we look at the SOL price chart, we see that the token has been bullish since the middle of October. The price jumped from $23.46 on the 19th of October to its current level of $34. The price chart also displays a rounding bottom breakout, similar to Bitcoin’s price trend. Additionally, Solana’s price trend also shows an ascending resistance trendline in action, opposing the uptrend. The possibility of a double top also arises as the uptrend struggles to move past the trendline.
So, will Solana reach $40? Despite the current positive sentiment, we could see SOL struggle to continue its uptrend. As the trendline jumps into action, we could see SOL drop and retest the $30 mark.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
