- October 30, 2023
- Posted by: [email protected]
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VanEck, a prominent asset management company, is making a bold prediction regarding Solana’s price, foreseeing a staggering 10,600% price rally by 2030. The report also explores a fascinating scenario where Solana could become the first blockchain capable of accommodating applications with over 100 million users.
Solana, a Layer-1 blockchain often touted as a competitor to Ethereum, has been on the rise, with its native SOL token surging above $32 in recent weeks. VanEck, known for its involvement in the cryptocurrency space and its submissions of Bitcoin exchange-traded fund applications to the United States Securities and Exchange Commission in recent years, anticipates further price gains for Solana and has shared its price forecast.
VanEck gives a number of valuation options for Solana’s price in their comprehensive analysis, ranging from a cautious estimate of $9.81 to an aggressive projection of $3,211.28 by 2030. To put this into perspective, Ethereum’s target price for the same period is $11,800.
Should Solana achieve the upper end of this projection, it would signify an astounding 10,600% price surge in the coming years. The report also explores the intriguing possibility that Solana could become the first blockchain capable of accommodating applications with over 100 million users, a feat that would set it apart in the blockchain space.
Furthermore, the report highlights Solana’s potential to close the gap between itself and Ethereum in the future, positioning itself as a significant player in the blockchain ecosystem. As of now, SOL has established itself as a top-10 cryptocurrency, experiencing remarkable growth of over 200% since the beginning of 2023. The total value locked up in the Solana ecosystem currently stands at an impressive $378 million.
However, there are indications that a partial pullback in the price of SOL may be on the horizon. The daily directional movement index (DMI) signals an increasing bearish sentiment on the daily chart, requiring a strong response from the bulls to protect the gains accumulated during the recent surge, which coincided with Bitcoin’s rise to $35,000.
If the bulls fail to regain control, it could lead to a drop below the $30 mark. Traders considering short positions for SOL may contemplate selling. This decision is influenced by technical indicators, notably the decreasing blue line (+DI) and increasing red line (-DI), which serve as signals for a potential price decline.
This pattern suggests elevated bearish sentiment and the potential for a market downturn, which, in turn, could result in a 15% decrease in Solana’s price from its current valuation of $32, aligning with a nearby support level fortified by the 21-day moving average.
While the future of Solana holds promise and potential for substantial growth, caution is advised due to the current technical indicators suggesting a possible price correction. Nonetheless, VanEck’s ambitious long-term projection for Solana’s price reflects the growing confidence in the blockchain’s capabilities and its position in the cryptocurrency landscape.
