While Bitcoin and the bulk of altcoins have recently experienced a sharp correction, an emerging cryptocurrency is unimpressed by it, seemingly inexorably continuing its steep uptrend.
We are talking about Solana (SOL). The altcoin has according to figures from coincodex.com in the past seven trading days alone, the share price has increased by around 70 percent. For comparison, over the same period, BTC corrected by more than 6 percent. The decline in the top altcoins Ethereum (-7 percent), Cardano and Binance Coin (each -15 percent) or XRP (-13 percent) is even more severe.
SOL / USD: 400 percent increase in one month
Even more impressive are the figures of SOL / USD when looking at larger time periods. The altcoin price rose by more than 400 percent in one month alone. In the last six months, growth has even reached over 1,200 percent. And anyone who has already invested in the cryptocurrency a year ago can look forward to an incredible price increase of more than 6,500 percent.
Anyone who invested only 1,000 euros in SOL/USD in September 2020, for example, would now get a return of 65,000 euros. With an investment of 10,000 euros, 650,000 euros would already jump out. For example, a single-family house could be financed.
The growth of Solana in this bull cycle is surpassed by hardly any other cryptocurrency. Among the top 50 coins by market capitalization, only the following 4 have an even better performance than Solana in the period of the past 12 months:
- Polygon (MATIC): +7,160 percent
- Terra (LUNA): + 8,900 percent
- Dogecoin (DOGE): +9,200 percent
- Axie Infinity (AXS): + 49,000 percent
The Dogecoin was massively pushed by Tesla boss Elon Musk, for example. And AXS benefits from incredible hype around the video game Axie Infinity, such as kryptoszene.de already reported.
SOL now among top 6 cryptocurrencies
Thanks to the strong rally, the price of SOL/USD is trading at more than 200 dollars at the time of publication and the market capitalization is already heading towards the mark of 60 billion dollars at the current level of 59 billion dollars. The trading volume is also considerable. This is currently only surpassed by the leaders Bitcoin and Ethereum as well as the stablecoin Tether.
Solana has now not only entered the top 10 of the most valuable cryptocurrencies, but has already taken position 6. SOL has thus left behind well-known altcoins such as Litecoin, Bitcoin Cash, Uniswap, Polkadot, Dogecoin and even XRP. As a reminder, XRP has long been a permanent member of the top 5 coins in the world and at its peak was even more valuable than top altcoin Ethereum.
Many investors are now likely to ask themselves whether the purchase of SOL is still worthwhile or the peak may have been reached and a sharp correction must be expected soon. And will SOL be able to stay ahead of an altcoin like XRP permanently or will the “traditional currency” remain the better choice for investors in the long run?
SOL / USD continues to rise in Parallel Channel
On the 1-hour chart of SOL / USD, it can be seen that in August the altcoin entered the chart formation of a so-called ascending parallel channel. The price has tested the support line several times in the range of 66, 102, 115, 140 and 150 dollars and can hold them each. The resistance line, on the other hand, was tested in the price range of 130, 150, 175 and 185 dollars.
On September 7, SOL / USD managed to break out of the Parallel channel to the top, which can be seen as a very bullish signal. However, at first it looked like a fakeout because the course of Solana has fallen back into the channel.
However, on yesterday’s trading day, the altcoin has once again made the breakthrough of resistance, so far holding above the old resistance line, which has thus become the new support line. In addition, a larger parallel channel is now visible in the chart, in which SOL/USD can theoretically rise even higher.
In contrast to a rising wedge, the probability of a break down in the parallel channel cannot be set as high. From the chart pattern, it is therefore difficult to analyze how long the SOL/USD rally will last.
XRP: Price target of $ 2.46 possible soon?
What is clear, however, is that at least the trend in this bull cycle speaks more for a purchase of SOL than for XRP. Viewed over a year, XRP is “only” growing by around 360 percent, which is miles behind SOL. However, the trend of XRP was overshadowed by an indictment from the SEC, which dropped the price to the bottomless of below 0.2 dollars at the end of 2020. Taking this into account, the current price level of 1.1 dollars is quite considerable.
On the 4-hour candles of XRP / USD, it can be seen that the altcoin had recently formed a rising wedge and was able to more than double its price in this formation of lows at around 0,5 dollars. However, the price was dismissed at the resistance line at around 1,4 dollars and has since experienced a sharp correction.
However, the chart pattern also shows the formation of a descending triangle. XRP broke its resistance line on August 14 and is testing it as a new support line. If this support zone holds, it could be a bullish signal for price. The break-out target from the descending triangle is around $ 2.46. XRP has not yet reached this level.
However, only short-term forecasts can be made from the chart formation. But what about the medium to long-term trend of SOL and XRP? Which altcoin is worth more as a permanent investment?
Analysts: SOL could rise to $ 10,000
Coin Price Forecast analysts expect XRP to close the year at around $ 1.18, slightly above current levels. in 2023, trust the altcoin to skip the $ 2 mark, and in 2026, XRP could also crack the $ 3 mark. However, in the long term, experts see the course reaching its limits in the range of about 3,5 dollars. However, that would be an increase of 250 percent.
The forecast for Solana, on the other hand, is far more bullish. Thus, analysts expect a year-end price of more than $ 650. As early as 2022, the price could jump well above $ 1,000. In the long term, the experts trust SOL to achieve extreme growth rates of more than 5,000 percent. An unbelievable price target of more than $ 10,000 is forecast by 2033.
Wallet Investor analysts are much more cautious. They trust SOL to achieve growth rates of less than 180 percent by 2026. The price target until then is around 565 dollars. When buying XRP, however, Wallet Investor expects more growth of over 240 percent in the same period. The price target in 5 years is set at 3.85 dollars.