Solana ($SOL) has been a recipient of exponential bullish price action recently, placing it in uncharted territories this year.
This uptrend took the coin to a new yearly high above $87 in the early hours of the day. This amounted to over a 750% increase since the start of 2023.
Even though $SOL was down from this price level at press time, trading at around $85, bulls seemed to stick around as the coin continued its trade in the green.
Recently, a bullish report was published by asset management company VanEck on Solana. Its team of analysts forecasted $SOL to touch $3K by 2030.
VanEck’s diverse valuation scenarios for Solana’s price ranged from a conservative $9.81 to an ambitious $3,211.28 by 2030. The price target for Ethereum ($ETH), in comparison, was set at $11,800.
What’s behind the current rally?
$SOL’s 24-hour trading volume skyrocketed by $4.8 billion, raising its market capitalisation beyond the $37 billion mark.
This helped it surpass $XRP in the list of top cryptocurrencies by market capitalisation as it secured its place as the fifth-largest crypto in the market.
In doing so, it outpaced industry giants such as Spotify and Electronic Arts in terms of valuation, as it entered the list of the top 500 largest companies globally (if cryptocurrencies are included in traditional industry rankings).
Many in the industry are now rooting for the coin to soon breach the triple-digit price threshold of $100.
Solana’s total value locked (TVL) has consistently exceeded $500 million since the start of December. At the time of writing, the TVL was around $1.22 billion.
A continuous upward trend was quite evident in this volume chart as the token has maintained its ascending trajectory since entering the $1 billion range.
As per recent data, $SOL has also broken the record in stablecoin metrics by becoming the network with the highest stablecoin transfer volume.
There has been a notable increase in stablecoin market cap and stablecoin growth on Solana in December, going above the levels observed in previous months. The former figure stood at over $1.7 billion at press time, which is a level last seen in March.
Solana has also been consistently ranked as one of the top three networks with the highest stablecoin transfer volume since mid-October. This indicated increased liquidity in the network.
What do the charts say?
The charts confirmed a bullish momentum for the coin through multiple indicators.
The Relative Strength Index (RSI), which is a momentum indicator to analyse overbought or oversold conditions, was noted in a sustained trend above 60.
The Moving Average Convergence/Divergence (MACD) went through a bullish crossover of line, establishing an uptrend for $SOL.
Awesome Oscillator (AO) also confirmed this trend with its green histograms. However, price volatility could be on the high as the Bollinger Bands were seen widening at the time of press.
