Technical Analysis

Total market cap at $2.21T: Will Solana hit $256 soon?

Published: Sep 26, 2024

Current state: In the last report, we analysed the total market cap around the $2.01 trillion zone, predicting two potential scenarios: price either holding this support or a liquidation event. As anticipated, the market went through a strong liquidation event, breaking below the 0.5 fib zone and reaching the bottom of the channel. This shakeout was healthy for the market, removing leveraged positions and clearing the way for a fresh push.

Key observations

Support: The $1.9 trillion level, as expected, provided strong support and triggered a reversal. Buying pressure from this zone helped initiate a rally back toward the upper channel.
Current status: The total market cap now stands at $2.21 trillion. This represents a solid recovery and places the market in a strong position to push higher. If BTC breaks through the current supply zone, we can expect the overall market to rally towards the upper fib resistance levels.
Price projection: We anticipate the total market cap to grow to $3 trillion in the coming months, a 35% increase that would bring the market back to previous all-time highs. As BTC and major altcoins like Solana continue to strengthen, this target is well within reach.

crypto total market cap with support and resistance levels, trendlines, and key price points marked.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Solana's role in the market

At present, Solana holds a 3.23% dominance within the crypto market. With Solana's upward momentum continuing, we expect its dominance to reach 4% in the coming months, elevating its market capitalization to $140 billion. With a total supply considered, this would result in a price of approximately $256 per SOL.

Conclusion

The total market cap has moved back into a bullish structure, supported by strong buying pressure at key levels. With a target of $3 trillion on the horizon, Solana is positioned to play a key role in the market's growth. As BTC nears a crucial breakout point, the next leg of the bull market is shaping up to be one of the most significant yet.