Layer-1 blockchain and Ethereum competitor Solana has seen its native SOL token surge above $32 this week, as asset management company VanEck anticipates further price gains and shares its price forecast.
In a report, VanEck outlined diverse valuation scenarios for Solana’s (SOL) price to range from a conservative $9.81 to an ambitious $3,211.28 by 2030 (in comparison, Ethereum’s target price is $11,800).
This would mark a 10,600% price surge for Solana in the coming years. The report also delves into a potential scenario where Solana becomes the first blockchain to accommodate applications with over 100 million users.
Furthermore, the report illustrates Solana’s potential to narrow the distance between itself and Ethereum in the future. VanEck has been engaged in the cryptocurrency arena for a while, having submitted Bitcoin exchange-traded fund applications to the United States Securities and Exchange Commission in recent years.
Solana (SOL) has emerged as a standout performer within the top ten cryptocurrencies, showcasing impressive growth exceeding 200% since the start of 2023. Consequently, Solana has surpassed major contenders, including Bitcoin(BTC) and Ether(ETH). Concurrently, Solana’s DeFi total value locked (TVL) has surged to an impressive $378 million.
However, based on the technical chart, there might be a potential for a partial pullback in Solana before the anticipated significant surge. The Daily Directional Movement Index (DMI) indicates an increasing hold by sellers on the daily chart, necessitating prompt action from the bulls to safeguard the gains amassed since the crypto market aligned with Bitcoin’s notable rise to $35,000 earlier this week.
Neglecting this action could potentially place Solana’s price in a vulnerable state, potentially leading to a drop below the $30 mark. Traders considering short positions for SOL may consider selling against the USD, as suggested by the decreasing blue +DI line and the rising red -DI line.
This pattern indicates a heightened bearish impact and the possibility of a market downturn, which could result in a 15% decrease in Solana’s price from its current valuation of $27. This aligns with a nearby support level, bolstered by the 21-day Exponential Moving Average (EMA).