Solana imitates Ethereum? Next goal is $ 500?

SOL’s soaring price refused to land, even in the face of a brutal market sell-off on Tuesday. After just two days, the sixth largest cryptocurrency recovered and entered a new era at $ 217.

The couple’s ability to withstand bearish pressure underscores investors’ growing interest in the Solana blockchain as an emerging Ethereum rival. Ethereum is the public blockchain currently at the forefront of the DeFi and NFT craze.

Price table SOL | The source: TradingView.com

Peter Kozyakov, Co-Founder and CEO of payment services company Mercuryo, said:

“SOL’s remarkable success in the market recently has more or less kept its momentum. With more than two NFT projects launched and shaped in the ecosystem every day, the demand for SOL from retail buyers is relentless. As a result, prices have been up more than 50% this week despite the market slump. “

In particular, on August 15th, Solana launched the NFT Degenerate Ape Academy, which includes a collection of 10,000 animated monkeys. They sold out in just 8 minutes, grossing 96,000 SOLs, or about $ 5.9 million.

Solana has stepped further into the NFT space by enabling the FTX-powered marketplace for digital collectibles earlier this week. Derivatives platform FTX announced that their new NFT company will enable NFT creators and owners to trade digital artwork across chains using Solana and Ethereum.

Solana defeated top opponents

The market lost more than $ 200 billion after Tuesday’s sudden sell-off, with Bitcoin falling from over $ 52,000 to almost $ 42,000 in a matter of minutes. Many analysts claimed the main reason was a number of long positions that were liquidated.

Altcoins more or less followed the trend of Bitcoin and also fell in parallel. ETH fell to 23.41% and ADA lost 30.89%.

ETH and ADA price development | Source: TradingView

However, SOL is an exception in the Red Sea. As the SOL fluctuated wildly between bullish and bearish, it eventually closed the day 5.45% higher and was followed by extensive upward moves in the following sessions.

It rebounded nearly 890% after bottoming out at $ 21.96 on July 20. At the same time, the total value of DeFi projects on Solana has exceeded $ 7.81 billion, according to data from SolanaProject.com.

4H SOL / USDT chart | Source: TradingView

The 4-hour chart shows that Solana is trying to break the psychological resistance between $ 213 and $ 218.

Given the sizeable gains in recent months, investors appear to remain cautious about the possibility of an increase in profit-taking. Only a four hour candle close above this resistance signals the continuation of the uptrend.

If it breaks the $ 213-218 area, Solana could attract a new wave of buyers that will push the price even higher. Based on the Fibonacci retracement indicator, if the overhead resistance breaks out, SOL may target $ 237 or even $ 263.

It is imperative to watch the USD 195 demand wall as any decline below that price indicates an impending downward momentum. If that fundamental support is lost, a larger decline towards $ 170-160 could be imminent.

Greg Waisman, Mercuryo’s co-founder and COO, predicts SOL will hit $ 500 by the end of the year.

“Solana’s growth rate seems to mimic ETH and BNB. The prediction of $ 500 turned out to be conservative for this coin. “

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Minh Anh

According to Cointelegraph

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