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Solana (SOL) has shown signs of recovery, consistently rising over the past week despite broader market downturns affecting major cryptos.
A recent analysis by TradingShot reveals the potential for a significant rally for SOL. According to the analyst, Solana is projected to rise as high as $4,000 in this cycle, contingent on key technical factors.
Possible Surge to $850 and $4,000
According to TradingShot, Solana’s one-week moving average (MA50) is a critical support level that has played a significant role in previous cycles.
In June, the expectation was for Solana to test this MA50, which it did early last month before rebounding. However, recent corrections have raised concerns that the MA50 might not hold.
If this support fails, the price could next test the 1W MA200, potentially jeopardizing the continuation of the bullish cycle.
Additionally, Solana’s 1-week relative strength index (RSI) is a crucial indicator to monitor. Following a double top in March, Solana has been in a correction phase and is approaching the bull cycle’s buy zone, where buying interest typically increases during bullish phases.
In the previous cycle, Solana experienced an extraordinary rise of over 51,250%. TradingShot noted that if a similar pattern unfolds, the potential peak could exceed $4,000.
However, the analyst noted that a target of $850 offers a realistic outlook for shorter-term investors seeking a more conservative approach.
Notably, with Solana trading at $134 at press time, attaining $850 demands a growth of 534%. Meanwhile, his most ambitious target of $4,000 would amount to a staggering return of over 2,885% for current investors.
Whale Activity Boosts Market Confidence
Another factor contributing to Solana’s potential rise is the activity of whales. Notably, one whale recently purchased 34,807 Solana tokens, worth approximately $4.52 million, bringing the total to around 207,000 tokens valued at $29 million.
This whale has steadily moved tokens to self-custody since February, signaling a strategic approach to accumulation. Moreover, the whale staked 115,135 SOL, valued at $15.3 million, reinforcing the long-term bullish outlook among major holders.
A Surge in Daily Active Users on the Solana
Further supporting Solana’s bullish case is the surge in daily active addresses on its network. Recent data revealed a record high of 5.5 million active users, surpassing other blockchain networks like NEAR, which recorded 2.9 million.
This increase in user activity, particularly notable given the market’s recent downturn, underscores growing adoption. The uptick began in late August and accelerated sharply by September 8, when Solana’s user count more than doubled within days.