Solana price falls as one ‘giga bull’ sees it rising to $500

Solana price fell into a local bear market as crypto selling intensified this week.

Solana (SOL), the fifth-largest cryptocurrency, has fallen 20% from this year’s high, dropping its market cap to $102 billion.

The decline coincided with a broader decline in its ecosystem. Meme coins such as Dogwifhat, Bonk, Popcat, and Peanut the Squirrel have dropped over 20% in the last 24 hours. The total market value of SOL-related meme coins dropped to $17.7 billion.

Solana’s pullback also mirrors declines in other layer 1 and layer 2 cryptocurrencies such as Avalanche, Ethereum, Arbitrum, and BNB. Historically, cryptocurrencies have shown a strong correlation with each other during market shifts.

Therefore, the question for most analysts and investors is whether this is a temporary pullback or the beginning of a new bear market.

McKenna, a crypto analyst with more than 93,000 followers, declared himself a “Solana giga bull” in an X post, predicting that the coin could jump to $500. He pointed out the cup and handle formation formed on the monthly chart as the basis of the bullish outlook.

Another popular crypto analyst, Jelle, pointed to the same formation on the weekly chart and predicted a jump to $600. A rise from the current level to $600 would represent a jump of close to 200%.

Solana has some of the best fundamentals in the crypto industry. It has become the favorite blockchain of developers developing meme coins and other types of dApps. The network collected over $660 million in fees this year.

Solana’s total value locked is over $8 billion, while stablecoin volume exceeded $24.8 billion. Additionally, Solana has emerged as the leading chain for decentralized exchanges, recording 30-day trading volume of over $151 billion (nearly double that of Ethereum).

Solana price point indicates further gains SOL price chart | Source: crypto.news

The weekly chart shows that SOL has pulled back sharply over the past few weeks, falling to the key support level of $206, which is the upper bound of a smaller cup and stem pattern. This movement shows that Solana is forming the stem of a larger C&H model.

The depth of the container is approximately 97%. Based on this pattern (bullish continuation signal), there is a possibility that SOL could climb to $520. This target is approximately 97% above the cup’s upper limit of $263.