Layer 1 blockchain and Ethereum rival Solana saw its native SOL token rise above $32 this week, as asset management firm VanEck forecasts further price gains and shares price forecasts.
In a report, VanEck outlined various valuation scenarios for Solana (SOL) price to range from a conservative price of $9.81 to an ambitious $3,211.28 by 2030 (by comparison, Ethereum’s price target is $11,800).
This would represent a 10,600% spike in Solana prices in the coming years. The report also touches on the possible scenario where Solana becomes the first blockchain to accommodate applications with more than 100 million users.
Moreover, the report shows Solana’s potential to narrow the distance between itself and Ethereum in the future. VanEck has been involved in the cryptocurrency space for a while, filing exchange-traded fund applications with the SEC in recent years.
SOL has emerged as one of the top 10 cryptocurrencies, with impressive growth of over 200% since the start of 2023. The total value locked in the Solana ecosystem is $378 million.
However, there may be a possibility of a partial decline in the price of SOL. The Daily Directional Movement Index (DMI) is indicating an increasing consolidation by bears on the daily chart, requiring strong action from the bulls to protect the gains accumulated since the cryptocurrency market coincided with Bitcoin’s (BTC) surge to $35,000 in recent days. .
If the bulls fail to take control, it could lead to a drop below the $30 mark. Traders considering short positions for SOL may consider selling. This is affected by technical indicators, where the blue line (+DI) is decreasing and the red line (-DI) is increasing, which are signals of a possible price decline.
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This pattern indicates an increasing bearish influence and potential market decline, which could lead to a 15% decline in Solana’s price from its current valuation of $32. This is in line with a nearby support level supported by the 21-day EMA.
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