Solana price forecast: Will SOL hit $500 in this cycle?

• SOL will likely start at $334, according to indicators.
• This token was negatively correlated with ETH, but strongly correlated with BTC.

The last 7 days Solana’s [SOL] The price has struggled for a run that is impressive. SOL’s price at the time of press was $167.12.

It was about the same as it was the 25th May. SOL’s value has increased 52.63 % on a year-to-date (YTD basis). The token’s performance in 2023 was far superior.

But the Solana bulls are still betting on a spectacular rally despite recent low prices. The price of SOL would not fall below $500 for most SOL owners before this cycle ends.

SOL only accepts Bitcoin, no ETH

This same group also predicted Solana’s all-time record high of $260 by the first quarter of 2024. SOL did not reach this target as it was just $210 close in March.

AMBCrypto looked at Solana’s predictions from an in-chain standpoint. We first looked at correlations with Bitcoin [BTC]With a. Ethereum [ETH].

Dune Analytics data shows that SOL is the fastest growing SOL in terms of sales. correlation BTC’s price was 0.83. It indicates that most of the time, the BTC prices are moving in the same direction.

For ETH the reading was 0,10, indicating a divergence of both cryptocurrencies. SOL would therefore have to surpass its current high in order for BTC to be able to achieve $500.

AMBCrypto also looked at social dominance. Social dominance is the amount of talk about a particular token compared to the other top-100 cryptocurrencies.

What is the best entry?

Santiment data shows that Solana has a social dominance of 4.938%. Comparing this to March’s highs, the reading is quite low.

The history has proven that low levels of social dominance are a positive. buying opportunity. The token is not in high demand if there are fewer conversations.

In this case, purchasing SOL between $161 and $168 is a great entry point for a rally. Open Interest was used as a further proof of this.

OI increases or decreases based on the net position. If it increases, this means money is being pumped into the contracts that relate to the token.

In contrast, a decline in the value of a currency implies deterioration of liquidity. exiting the market. SOL’s interest in the open market was at $807.25m as of press time.

Santiment

This price drop indicated to Solana that he could be dumping into the underside support This was $161. This does not mean that there will not be another increase in the number of open contracts.

If SOL’s OI reaches $2 billion, as it did a few months ago, then the price may increase by 100%. This means, based on the price of the token at the time of press release, that it could target $334 over the next few months.

Data Says “enough buying power”

AMBCrypto offers a number of additional metrics, including the following: looked Solana Total Value Locked. TVL measures if participants in the market are locking assets or stakes and withdrawing their capital.

If the number increases, this means the network has a healthy state and that participants are confident in the project’s ability to generate a high yield. A decrease in the metric indicates an increase of the assets that are withdrawn.

DeFiLlama data shows that Solana had a TVL of $4.80 Billion. The increase was 20.27% over the last thirty days. The last week has not been good for tokens as some SOL staked were apparently withdrawn.

Source: DeFiLlama

The TVL for the chain, despite the recent decline in activity levels on the network is likely to reach $8 billion.

SOL may be in high demand if/when this occurs, and the price could reach $500 or even exceed it. Dune’s data revealed that Solana’s stablecoin supply has increased.

Here’s a list of realistic and not-so-realistic images. SOL’s market cap in ETH terms

USDT, USDC and other stablecoins are available. recently added PYUSD The hike in the price of gasoline has contributed to this.

It is clear that SOL values have increased as a result of the increase in addresses.