Highlights:
- Solana price is currently in a correction after hitting a weekly high of $225.46
- Rally through $225.46 could pave the way for a test of $250
- Deepening use cases and a bullish broader market make $250 an easy target
Solana is slightly in the red today, down by 6.25% in the day. At the time of going to press, Solana was trading at $206.08. Trading volumes are down as well, dropping by 4.97% to stand at $10.68 billion. Despite the slight correction today, a lot points to a potential continuation of the momentum Solana has built up in the last 24 hours.
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Solana Gets a Boost in the DeFi Space
DeFi Technologies has introduced SolFi, a new business that has the catchy brand ‘MicroStrategy for Solana’. The spinoff, which commenced trading on November 12, intends to operate solely on the Solana blockchain and will give investors access by way of proprietary trading, validator nodes, and investments in the ecosystem. DeFi Technologies believes SolFi will ensure it takes advantage of the growth prospects within Solana’s ecosystem.
The main focus of SolFi is on earning bigger returns on staked Solana (SOL). That’s compared to what a standard signup for third-party staking support would provide. SolFi expects to achieve steady cash flow generation through the use of its Maximum Extractable Value (MEV) operating system which can either be returned to the investors or plowed back into the company.
As Olivier Roussy Newton, the CEO of DeFi Technologies, emphasized, “Similar to MicroStrategy’s approach to Bitcoin, SolFi is developing its investment strategy around Solana since inception”. SolFi will additionally look into innovative financing methods to increase its treasury and speed up staking activities.
With growing investor sentiment around Solana, analysts project it could reach $600 in this cycle. This could allow SolFi to yield good returns on investments focusing on Solana assets.
Analysts and Traders Become Increasingly Bullish on Solana Price
Bluntz, a pseudonymous analyst who is notable for his accurate predictions for cryptocurrencies, has put forward some bullish projections for Bitcoin, Ethereum, and Solana. Speaking to his X followers, Bluntz forecasts that Bitcoin will reach a bull market peak between $130,000 and $150,000, Ethereum at $8,000, and Solana at $500.
Bluntz further expands on the Elliott Wave theory, arguing that Bitcoin is currently in the last of the ‘5’ waves. This is a big deal as it makes a strong case for an altcoin rally, and that includes top altcoins like Solana.
early stages of a triangle here on $btc lower timeframes, healthy consolidation before we tackle the 90k breakout again pic.twitter.com/R7ZcLol3S2
— Bluntz (@Bluntz_Capital) November 13, 2024
Venture Capital Bullish on SOL
Solana has quickly gained traction amongst venture capitalists and institutional investors alike. This category of investors believes there exists a considerable opportunity for growth in the ongoing bull cycle. With the price of development over the last year and general optimism about Solana rising, it is believed that an ambitious price target of $600 is a possibility. A survey by MV Global hints that most venture capital firms believe $600 is a possibility.
Based on the Q4 2024 Crypto Investment Manager Survey by MV Global, 76 prominent venture capital and hedge fund managers evaluated the prospects of Solana. Most importantly, one-third of those polled expect SOL to reach $600 or more in this bull cycle. 23% of surveyed respondents hold that $600 is the limit but the rest think that the price for the token will stay anywhere between $150 and $300.
Technical Analysis – Solana Price in Minor Correction After Rally
Solana is in a correction after a sustained 7-day rally. This could be indicative of profit-taking by short-term traders. If the correction continues, the key level to watch would be $184.62, now a key support level.
However, if bulls regain control, the key level to watch would be the weekly high of $225.46. A rally through this could see Solana hit a high of $250 in the short term. Of the two scenarios, the odds are higher for Solana to rally to $250. That’s because the broader market is strongly bullish and this supports a potential Solana rally.
Recap
Solana may be in a correction today, but the momentum is bullish. From the growing adoption of DeFi to the rising interest in venture capital, the future looks bright for Solana. In the very short term, $250 is a realistic target.
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