Crypto analyst Jacob Canfield has laid out a comprehensive analysis, suggesting Solana (SOL) could be on the brink of an unprecedented market surge. โIn my opinion, I think that Solana is going to continue to be one of the biggest movers during this current bull market cycle,โ Canfield states, proposing that Solana could potentially escalate its market dominance to the 12-15% range.
Can Solana Hit $1,000?
Canfield bases his analysis on several indicators. He highlights the Solana Dominance (SOL.D) chart, noting that at the peak market cap, it didnโt even crack 3%. Given the current trends and the breakout of SOLBTC from its weekly resistance, Canfield envisions a scenario where Solana could enter a parabolic rally phase, which is further supported by the SOLETH chart showing a similar pattern. โSOLETH โ Also currently broke out of a weekly resistance and looks to be forming a parabolic rally against it.โ
A significant factor in Canfieldโs analysis is the current state of Ethereum Dominance (ETH.D). He notes that ETH.D is breaking down from a long-term trendline and losing the 200 weekly moving average, now sitting at 17%. โIf Solana continues to trend against Ethereum and it continues to break down to 2019-2020 levels, we could see SOL as the big winner this cycle,โ Canfield explains.
However, Canfield does not disregard the potential ramifications of recent news regarding an Ethereum ETF. โThis may not play out with the current ETF announcement news as it will bring more attention,โ he acknowledges, indicating that an approved Ethereum ETF could shift investor focus and capital back to Ethereum, potentially tempering Solanaโs ascent.
Despite potential headwinds from the Ethereum sector, Canfield emphasizes Solanaโs robust partnerships with corporate giants like Google, Circle, and Amazon, positing that these collaborations could significantly drive adoption and enhance Solanaโs visibility in this cycle of the crypto market.
Furthermore, Canfieldโs analysis extends beyond charts and partnerships. He delves into the Solana ecosystem, spotlighting projects that are paving the way for its expansion. From decentralized finance protocols and automated market makers to NFT storage solutions and governance tokens for gaming platforms, Canfield points to a breadth of innovation within Solana that parallels, and in some aspects, seeks to outdo Ethereumโs ecosystem.
In light of the FTX debacle, Canfield remarks on the psychological impact on Solanaโs market sentiment, noting that with Sam Bankman-Friedโs legal troubles, there is an opportunity for Solana to redefine itself. โThereโs a bit of PTSD around the ecosystem, but itโs time to become its own entity and forge its own future,โ he asserts, suggesting that Solanaโs future will be shaped by those who are deeply integrated into its ecosystem, from developers to traders and influencers.
His conclusion: โSolana could triple or quadruple itโs all time high market dominance around 12-15% and if it continues to trend against Bitcoin, could easily see a $1,000 per coin and take the #2 spot behind Bitcoin.โย When asked about the potential of Ethereum, Canfield emphasized, โNo reason to not have allocations to both. Itโs like trying to bet on Microsoft or Google. Tesla or Ford: Just buy both.โ
Short-Term SOL Price Outlook
On the shorter-term horizon, analyst Rekt Capital brings attention to Solanaโs price movements in a recent post on X. โSolana continues to outperform in the market. In 2021, SOL upside deviated to $53 and then $61 before retracing to the bottom of the purple box,โ he noted, referring to a specific zone on the price chart that has historically acted as both resistance and support.
In the Rekt Capital chart, SOL is currently breaking out above the zone. However, if history repeats itself and the zone once again acts as strong resistance, the SOL price could suffer a severe pullback. Using the green arrow in the chart, Rekt Capital paints a scenario in which SOL initially falls back towards $30 before the price rises again towards $42.
Featured image from ABCC Exchange, chart from TradingView.com
