On Wednesday, June 10, stablecoin issuer Circle minted USDC worth $250 million on the Solana (SOL) blockchain. The injection of fresh liquidity added fuel to market participants’ confidence about the Solana ETF’s impact on the token’s price.
Newly minted stablecoins on a network mostly reflect increased demand for the underlying crypto asset. But does this mean higher prices for SOL?
Circle Arms Solana Faithful With Buying Power
At press time, SOL’s price was $143.85, an 8.14% increase in the last seven days. Within the same period, the total value of USDC added to the blockchain was $250 million, reinforcing the notion of meeting users’ demands.
In March, Circle revealed that one of its missions for the year was to boost liquidity on Solana. Therefore, the recent action proves it is staying true to its words.
Apart from that, there has been speculation that the Solana ETF may bring about a growth in the number of SOL holders. If this is the case, the price of the token will increase.
This bias is also backed by the Supertrend position on the daily chart. The Supertrend indicator is a technical used to spot trends and generate buy or sell signals
If the red part of the indicator is above the price, it is a sell signal. On the other hand, if the green area is below the price, it is a buy signal.
As of this writing, the Supertrend generates a buy signal at $125.18. This trend seems to have been validated as the value of SOL is higher.
Read More: 6 Best Platforms To Buy Solana (SOL) in 2024
However, the chart above shows that the price may continue to climb toward $160, where it can encounter resistance.
Backing the uptrend is the Moving Average Convergence Divergence (MACD). This tool uses the 12-day and 26-day moving averages to determine if a trend is bullish or bearish.
Positive ratings of the indicator show bullish momentum, while negative readings indicate otherwise. Since the reading as of this writing is positive, it adds credence to the prediction of a further upswing.
SOL Price Prediction: $159, Then $950?
Furthermore, the hype around the Solana ETF filing has brought new predictions for the cryptocurrency. For example, on July 8, analyst Ali Martinez shared a mind-boggling SOL forecast.
According to Martinez, Solana looks to follow a similar pattern that saw it break out in 2021. From the chart shown, the analyst notes that SOL’s price can jump above $950 before the end of the bull cycle.
In addition, BeInCrypto employs the Fibaonccil Retracement indicator to spot levels that SOL may reach soon. The most important numbers in this sequence are 23.6%, 38.2%, 61.8%, and 76.8%.
With these ratios, one can identify support and resistance levels while figuring out possible price targets.
Read More: Solana vs. Ethereum: An Ultimate Comparison
From the image above, a rise in demand for Solana can drive the price to $156.93. A highly bullish scenario could send it to $165.52.
However, if optimism about the Solana ETF drops, the token’s price may fall to $137.39. In the long term, the prediction that takes SOL beyond $950 will be invalidated if the U.S. presidential candidate Donald Trump, does not emerge as the winner in the coming elections.
This is largely due to the support the broader crypto market has for his emergence and his outspoken support for the ecosystem.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
