Ethereum competitor Solana (SOL) has been rising almost continuously for weeks, setting one all-time high after another. When will the correction follow?
Solana hits all-time high after all-time high
It’s a chart history that most altcoins can only dream of. Since the end of July, Solana is already in an upward trend. On July 20, the blockchain super fleet was still trading at $ 22.84 – then the continuous increase began: On August 1, SOL was still at more than $ 36, by mid-August it was already over $ 50. Here, the SOL bulls then switched to the next gear and brought the coin up step by step. It followed all-time high to all-time high: first the movement to over $ 100, then yesterday’s increase from $ 142 to exactly $ 194.82 a few hours ago.
The much-quoted trader RektCapital writes to his more than 195,000 Twitter followers about the increase:
“Solana continues its phenomenal price rise and continues to reach new all-time highs.
SOL has recovered over 240% since the break of the downtrend.“
Solana continues its phenomenal run into Price Discovery, consistently reaching new All Time Highs
— Rekt Capital (@rektcapital) September 7, 2021
The fast-growing Solana blockchain manages to reach new highs effortlessly. The positive effect is also likely to be that there are numerous developments within the ecosystem, for example in NFT marketplaces. But how long will the Solana rally last? Experts have been expecting a correction at Solana for quite some time, already before reaching the $ 100 mark, corresponding forecasts were made.
Blockchain data provider Glassnode, for example, comments: Solana could be extremely overvalued. Background: Like hardly any other smart contract platform, SOL has a strong mismatch between TVL (“Total Value Locked” – the value of the capital tied up in the protocol) and market capitalization. That means: Solana is overvalued based on how much capital is actually in the ecosystem. There is relatively little capital on the blockchain, but the price is very high. Judging by this, Solana ” could be the most overrated,” according to the researchers.
The question remains: Is Solana threatening a correction – or how long could the rally run?
Will Solana soon push Cardano from 3rd place?
Highly respected crypto economist Alex Krüger (@krugermacro on Twitter) is extremely bullish on Solana. According to his analysis, Solana should rank 3rd in the crypto top 10 in terms of market capitalization. For comparison: Currently, Cardano (ADA)is in third place by market capitalization with $ 83,237,934,294. Solana, on the other hand, currently has a market capitalization of $ 53,121,459,555 and therefore still has plenty of room to grow. Krüger also expects a reset of 25 to 30% at Solana. However, only “sometime” – all too soon, the analyst seems to expect no end to the SOL rally.
$SOL should be # 3 in terms of market cap
You’ll get your 25% -30% pullback at some point
– Alex Krüger (@krugermacro) September 7, 2021
Trader Josh Rager is similarly optimistic about Solana: he expects prices in the range of several hundred dollars at Solana (to buy from eToro or Libertex) in the coming year, according to his Assessment. This means at least a value increase of 50% at Solana, in the bullish case even 100% or more.