thecryptobasic.com
Crypto analyst InvestingScope has placed an ambitious price target for Solana, speculating a surge to $5,000 amid an expected parabolic breakout.
Solana has performed fairly in the last seven days amidst a broader market rebound. For context, the fifth largest crypto asset by market cap has surged over 5% in the past week and has rebounded 22% from the lows seen early in the month.
Amidst bullish expectations for SOL, an analyst, like other market experts, has predicted a lofty price target for the asset. In an analysis, market commentator InvestingScope asserts that Solana is aiming for a price target of $5,000.
Emerging Parabolic Breakout
InvestingScope cited an emerging parabolic breakout on the SOL/USD 1-week timeframe. According to the analyst, a breakout of the forming price pattern would trigger a staggering 3,209% Solana uptick to $5,000.
The analyst noted that the SOL chart was forming a super-bullish “Channel Up” price pattern similar to the one from December 21, 2020. Notably, the breakout from this formation facilitated a 40,668% surge in the Solana price from $1.56 to its all-time high of $260 in November 2021.
Furthermore, InvestingScope noted that the Channel Up pattern formed in 2020 when the 1-week relative strength index (RSI) rebounded on the pressure zone. The analyst spotted a similar pattern in Solana’s chart on Wednesday, leading to the $5,000 SOL prediction.
Meanwhile, the market speculator pointed to bullish confirmations on the Solana chart. He noted that Solana turned bullish on the daily time frame with RSI at 58.7, moving average convergence divergence (MACD) at 1.5, and average directional index (ADX) at 25.2.
However, he noted that SOL remained neutral on the weekly timeframe. RSI trends at 51.9, MACD at 6.16, and ADX at 25.2. He insinuated that a bullish bias on these indicators would confirm the impending price surge.
Fundamental Catalysts Crucial
While InvestingScope noted that Solana is technically ready to surge exponentially, he said that the asset needs fundamental catalysts to boost the chances of the price uptick. The analyst asserted that adoption of the Solana network and other trending narratives would facilitate the ambitious surge to $5,000 per coin.
Notably, bullish sentiments on the Solana ecosystem surged following notable announcements at the just-concluded Breakpoint event. For instance, Solana announced a probable partnership with leading asset manager Frankin Templeton to launch a mutual fund on the network.
Solana Mobile also announced the launch of the Solana Seeker, the second version of its Web3 mobile device. Furthermore, Solana partnered with Google Cloud to debut GameShift.
Meanwhile, SOL retraced 1.67% in the past 24 hours after a push to $160. At the time of writing, the asset trades at $155.87.