Solana (SOL), the fifth-largest cryptocurrency on the market, has experienced a period of decline in recent weeks, hitting a two-month low of $121 on Friday. The coin has struggled to break above the $188 level in May, which has resulted in a steady rise downward trend The situation has further deteriorated over the past seven days amid a general market correction.
However, cryptocurrency analyst Jelle has sparked optimism, suggesting the potential for significant gains for SOL in the coming months, reminiscent of the legendary “Summer of Solana” from 2021.
Analyst compares to 2021’s “Solana Summer”
Jelle shared on social media analysis SOL price action, comparing its current behavior with events in the summer of 2021. The analyst noted months of consolidation, characterized by lower highs while maintaining support above the $120 level.
Jelle highlighted that SOL is bouncing off the weekly average level of the Relative Strength Index (RSI), which mirrors the pattern observed in July 2021. Encouraged by these similarities, Jelle made a bold move towards Solana’s future, setting a $600 target for the market cycle.
During the Solana Summer of 2021, the price of SOL more than tripled between July and November. The coin’s market capitalization increased significantly from a pre-summer low of $10 billion to an impressive high of $63 billion by the end of the year, ultimately driving the price of SOL to its current level the highest level of all time in the amount of $259.
Jelle’s bullish outlook suggests the potential for even bigger gains this time around. A jump from the current trading price of $141 to $600 would represent a remarkable 352% raise, surpassing the coin’s current value.
Despite this, Solana immediately faces resistance just above the current trading price at $143, a formidable barrier that has proven to be a challenge for the token over the past six days.
The next targets are the 200-day exponential moving average (EMA) and the $150 resistance level. 200-day EMA has been a key support level for the token over the past six months, helping to fuel its price growth in the first quarter of this year, reaching a yearly high of $210 on March 18.
Reclaiming the 200-day EMA would be a must for Solana Bulls as this would allow the token to reach and surpass the next hurdle at $170.
Market capitalization falls by double digits
Delving into key financial metrics to assess the performance of Solana blockchain technology and price correlation, Token Terminal data shows that Solana’s fully diluted market capitalization is $80.78 billion. However, this figure represents a decline of 11.9% over the last 30 days.
Solana’s market capitalization, which takes into account the number of tokens actively trading on the market, currently stands at $64.54 billion. As with the fully diluted market capitalization, this metric has seen its value decline by 11.4% over the past 30 days, similar to the price of SOL.
However, despite the recent market decline, the Solana symbol trading volume It has remained relatively stable over the past 30 days, with trading volume at $77.37 billion, indicating continued interest from growth-minded investors.
Featured image from DALL-E, chart from TradingView.com
