Solana (SOL) still has room to fall in the near term, but SOL/USD can rally 5,000% if it follows in the footsteps of its top rival Ethereum.
That Ethereum 2018 fractal
SOL’s risks dropping to $15 on anticipations it would behave like Ethereum during the market crash in 2018.
Notably, Ethereum’s native token Ether (ETH) price fell to nearly $79 in December 2018 after undergoing a 95% correction earlier that year from its peak of $1,529. Afterward, it underwent a long recovery, rising nearly 6,000% over the next four years and thus hitting a record high of around $4,950 in November 2022.
Solana, which rivals Ethereum for its top spot in the smart contracts sector, has fallen by over 85% after peaking out in November 2021 at nearly $267. That leaves the token with the room to fall by another 10% when measured from its said record high.
Popular analyst PostyXBT says SOL could decline to $15, thus mirroring Ethereum’s bear cycle in 2018. What’s more, the Solana token could see an Ethereum-like recovery in the coming years that could take SOL price to over $750, he adds.
$ETH did a ~60x from the 2018 lows despite many people calling for it to hit zero…
If $SOL drops to $15 I think a ~50x is on the cards whilst people call for it to nuke to zero.
For those who question the functionality issues and outages, remember that hype always wins.
— Posty (@PostyXBT) July 11, 2022
Meanwhile, another popular analyst, Spencer Noon, thinks on the same lines, albeit without sharing a clear upside target.
Noon argues that Solana has been going through a “disillusionment” phase that plagued the Ethereum market in 2018, noting that the project would eventually overcome its difficulties.
“Solana has a vibrant developer ecosystem, and its downtime issues are solvable. This will be obvious in retrospect,” he said.
Solana funds attract $110M in 2022
Solana-based investment funds have attracted over $110 million in inflows in 2022 as of July 1, compared to $450.9 million that exited Ethereum funds, according to a recent weekly report by CoinShares.
The fund inflows appear as Solana’s market capitalization gradually creeps toward Ethereum’s following its launch in March 2020.
The Ethereum/Solana market cap ratio is currently around 32.5 versus the December 2020 peak of 525.3, according to data tracked by TradingView.
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