Layer 1 blockchain and Ethereum competitor Solana has seen its native SOL token rise above $32 this week, as asset management firm VanEck anticipates further price gains and shares its price forecast.
in a reportVanEck described various valuation scenarios for Solana (SUN) price will range between a conservative $9.81 and an ambitious $3,211.28 by 2030 (for comparison, Ethereum's target price is $11,800).
This would mark a 10,600% price increase for Solana in the coming years. The report also delves into a potential scenario where Solana becomes the first blockchain to support applications with over 100 million users.
Furthermore, the report illustrates the potential for Solana to reduce the distance between itself and Ethereum in the future. VanEck has been involved in the cryptocurrency field for a while, have submitted applications for Bitcoin exchange-traded funds to the United States Securities and Exchange Commission in recent years.
SOL has become a top 10 cryptocurrency, with impressive growth exceeding 200% since the beginning of 2023. The total value locked in the Solana ecosystem is $378 million.
However, there could be a possibility of a partial pullback in SOL price. The Daily Directional Movement Index (DMI) indicates increasing control by the bears on the daily chart, requiring strong action by the bulls to safeguard the gains accumulated since the crypto market aligned with that of Bitcoin (btc) rise to $35,000 in recent days.
If the bulls fail to take advantage, it could lead to a drop below the $30 mark. Traders considering short positions for SOL may consider selling. This is influenced by technical indicators, where the blue line (+DI) is decreasing and the red line (-DI) is increasing, which are signals of a possible price drop.
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This pattern indicates further bearish impact and the possibility of a market slowdown, which could result in a 15% decline in Solana price from its current valuation of $32. This lines up with a nearby support level reinforced by the 21-day exponential moving average.
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