Will SOL Soar To $2,800?

Solana, like Bitcoin and Ethereum, remains bearish. Though prices are higher at spot rates, the downtrend remains. Looking at the candlestick arrangement

Solana (CRYPTO: SOL) remained bearish on Monday evening, trading in the red despite rising 20% from June 2024 lows. At press time, SOL prices were trading at $130, down 2.3% over the past 24 hours and up nearly 120% year-to-date.

Solana prices have been rallying over the past few months, adding to gains from early 2023.

However, the coin is still trading far below its all-time high of $240, which was hit in March 2022. Despite the downtrend, some analysts remain bullish on Solana, predicting more gains in the coming months.

In a recent post on X, one analyst noted that SOL prices may outperform the broader market, rising to at least $2,800 in the next bull cycle.

Specifically, the analyst drew parallels between the current SOL price action and that of Ethereum (CRYPTO: ETH) in 2018.

After rallying to around $1,400 and registering a new high, the coin crashed in 2018, falling below $100 and reversing most of the gains from the previous bull cycle.

In 2021, Solana, riding the wave of lax monetary policy and free cash, rose to as high as $240. However, the coin fell sharply after peaking, crashing to as low as $8 in November 2022.

The dump was exacerbated by the collapse of FTX and Alameda Research, both of which were heavily invested in Solana.

Interestingly, the analyst noted that ETH fell sharply after rallying, only to recover more than 20X in 660 days.

Since the depth of the 2018 and 2022 retracements of ETH and SOL were nearly identical, the analyst thinks there will be more room for SOL to rip higher.

According to the analyst, SOL will likely peak at over $2,800 in future sessions.

Solana Is The Home Of Meme Coins, Spot ETF Hopes

There are several possible drivers behind this optimism. One of them is the rising prominence of Solana over the past few months.

Developers, especially those working on meme coin projects, are increasingly attracted to the network, thanks to its low fees and high scalability.

To date, popular meme coins that command billions in market capitalization, such as BONK and BOME, are present on Solana.

Moreover, the recent decision by VanEck and 21Shares to file for spot Solana exchange-traded funds (ETFs) was met with positivity.

While these filings are still in the early stages and will be subject to review by the always-stringent United States Securities and Exchange Commission (SEC), there is hope, given the events surrounding spot Ethereum ETFs.

If a spot Solana ETF is approved in the U.S., institutions will be able to gain exposure, potentially driving prices even higher.

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