Solana (SOL) has had an explosive start to 2023 after struggling through most of the previous cryptocurrency bear market. The so-called “Ethereum killer” has surged from less than $10 at the end of 2022 to over $116 at the time of this writing. This represents a whopping 10x profit over the course of a year.
As SOL appears to be mimicking the Ethereum bullish fractal, speculation is heating up as to how high Solana can run this cycle. Here we take a look at Solana’s background, what’s driving a parabolic price increase in 2023, theoretical future price targets based on Fibonacci extensions, and more.
A quick primer on Solana
Dubbed one of the “Ethereum killers,” Solana is a highly scalable layer 1 blockchain network capable of processing over 50,000 transactions per second. This speed is much faster than older chains such as Bitcoin or Ethereum. Solana prioritizes scalability through unique proof-of-history consensus combined with proof-of-stake security.
The network has gained tremendous traction through 2021, with SOL rising over 15,000% from $1.66 to a high of $260. However, the downward trend in 2022 has wiped out 97% of Solana’s value, with its lowest price at just $8. Starting in 2023, Solana appears poised to continue outpacing legacy chains and establish itself as a top 10 cryptocurrency project.
What’s driving Solana’s bull market in 2023?
Solana fell 97% from its all-time high, reaching $9 levels at the end of 2022 before forming a clear bottom. Momentum returned in early 2023 thanks to several key drivers.
Cooling inflation improves macro conditions
Return of retail and institutional investor interest in cryptocurrency assets
Solana’s burgeoning DeFi and NFT ecosystem continues to grow
Solana ecosystem airdrops like BONK are experiencing a massive rally.
Analysts speculate that Solana may have mimicked the Ethereum bullish fractal
Driven by these catalysts, SOL has experienced a parabolic rise and recently reached the psychologically important $100 level for the first time since the summer of 2022. With positive fundamentals and technology aligned, Solana is likely to continue its upward trend through 2023.
How high can Solana climb?
As SOL heads back towards its previous all-time highs, the next question is how high we can run this cycle. Several analysts have highlighted fractal similarities between Solana’s 2023 price action and Ethereum’s 2017 bull market.
Ethereum rose more than 14,000% from bear market lows of $5.80 to $1,430. Applying the 1.414 Fibonacci extension would result in a similar high this cycle for SOL at around $1,300. This represents an additional profit of more than 10x from current levels near $116.
With on-chain activity, user growth, and network development accelerating, Solana appears well-positioned to continue its exponential growth in 2023. This will probably significantly outperform Bitcoin. If the positive momentum continues over the next year, above $1,000 is still within reach.
Trade Solana Futures Your Way – PrimeXBT Benefits
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In addition to industry-leading variable leverage and ultra-low fees, PrimeXBT offers a customizable modular interface with advanced order types, charting tools, risk management, copy trading modules, and more. This is everything a technical trader needs to maximize profits from a long or short position.
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With SOL futures offering leverage of up to 150:1, traders are ready to compound even small movements in price to generate windfall profits. As one of the most popular major cryptocurrencies coming off the bottom of a brutal bear market, Solana futures represent the best tool to play into this massive bull market.
Disclaimer: Technical analysis is provided by a third party and is provided for informational purposes only. It does not reflect the views of Crypto Daily and is not intended to be used as legal, tax, investment, or financial advice.