Home Latest News Solana price to outperform Ethereum as SOL eyes 800% explosive rally –...

Solana price to outperform Ethereum as SOL eyes 800% explosive rally – FXStreet

Sarah Tran Sarah Tran
Independent Analyst

Solana price has witnessed a considerable surge, climbing over 1,000% since mid-July this year. The Ethereum-killer’s rally is not over yet, as SOL could be repeating history as a massively optimistic target has been put on the radar since a bullish chart pattern has formed. The altcoin, which ranks fifth by market capitalization, could easily outperform ETH as the two tokens compete for adoption.
Solana price could be bound for an explosive surge as its native blockchain is one of the few blockchains with a roadmap to scale millions of transactions. According to cryptocurrency billionaire Sam Bankman-Fried, the protocol is one of the few currently existing public blockchains that could scale to millions of transactions per second for fractions of a penny per transaction.
He added that not a lot of other blockchains have been focusing on scalability and reducing fees, including Ethereum. Bankman-Fried highlighted that mass-scale application businesses would need to be able to take on hundreds of millions to billions of users and transactions per second. 
Ethereum transactions take a comparatively long time to get processed, and its gas fees – transaction fees – are relatively high. The ETH alternative, Solana allows users to pay much lower fees and receive faster transaction times. The benefits that the SOL protocol provides incentivize users to stay within the ecosystem, especially for decentralized finance applications and non-fungible token (NFT) purchases.
As Ethereum gas fees are back on the rise while activity on the network is picking up, users could see the Solana blockchain as a viable alternative. Since the protocol was launched in April 2020, SOL price has risen by around 16,000% so far this year, becoming the fifth-largest cryptocurrency by market capitalization in less than two years. 
Solana price has formed a bull pennant pattern on the daily chart, suggesting an outlook that swings in favor of buyers. By measuring the flagpole of the technical pattern, SOL is expected to climb 89% and reach $310.
Since the breakout above the upper boundary of the prevailing chart pattern at $166 on October 20, the bullish outlook was validated and SOL already surged 57%, reaching its all-time high at $260. Solana price is now only 19% away from the upside short-term conservative target at $310.
SOLUSDT
SOL/USDT daily chart
In the longer term, Solana price has the potential to climb 800% toward $1,523, the measurement of the ascent from the bottom to the top of the flagpole of the bull pennant. Although this figure may seem large at first, SOL has seen a tremendous run of over 1,300% since the last time the token has presented the same chart pattern.
The bull pennant pattern that formed on December 22 and broke out on March 26 presented a 94% upside target for SOL but realized a 290% bull run. The slice above the topside trend line of the pattern at $14 has eventually witnessed Solana price surge by 1,360%, reaching the top of the flagpole of the most recent chart pattern at $215.
SOLUSDT
SOL/USDT daily chart
However, Solana price could see periods of retracement and correction as the token explores reliable support before ascending higher. SOL could discover immediate support at the 21-day Simple Moving Average (SMA) at $222, then at the 78.6% Fibonacci retracement level at $209. 
Additional lines of defense may emerge at the 50-day SMA, which coincides with the support line given by the Momentum Reversal Indicator (MRI) at $184, then at the 61.8% Fibonacci retracement level at $169.
 
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Ethereum Merge will have a massive impact on the crypto ecosystem. Despite its short history, crypto has several key updates lined up, the Merge and the ETHW hard fork. The successful completion of the Merge could alter the future of the DeFi ecosystem and several dApps that rely on the Ethereum blockchain for conducting business. 
Bitcoin price produced took a massive and sudden U-turn after the US Consumer Price Index (CPI) data was announced on September 13. Although the CPI decreased from 8.5% to 8.3% year-on-year, it was higher than the expected rate of 8.1%.
XRP price could rally back towards $0.38. Still the much larger count suggests a plummet towards $0.24 could occur in the coming months. The $0.48 invalidation level is still necessary to qualify the end of the downtrend.
Institutions have an important place in the crypto space as they tend to bring not only high volumes and inflows but also the credibility that crypto lacks, which keeps financial institutions at bay. 
Bitcoin price has not only swept key swing lows, as noted in last week’s articles, but it has also reached its first recovery level target. While the recovery rally was as quick as it was a surprise, investors can hope for a minor retracement to get on the next leg-up.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
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She has spent the past eight years playing the role of an infrastructure consultant, and has now joined Inferse.com as a full time blogger. Her current profession is a result of her deep interest in computer gadgets, laptops, gaming accessories and other tech happenings.