Solana is down 3% in the past week amid bearish pressure
An influential analyst is predicting $375-$739 for Solana
SOL has retested key support with key indicators flashing red lights
Solana SOL/USD has lost 3.24% in the past week to trade slightly above $32. The second-largest proof-of-stake network after Ethereum, currently commands a market cap of $11 billion.
According to its website, Solana is a decentralized computing platform. The layer-one network is powered by SOL, a token used for paying transaction fees and utility. Despite the current value, which is nothing compared to its ATH of $260, there are positive predictions.
A popular anonymous analyst is predicting a bull run for Solana. The strategist, who doubles as a host for InvestAnswers, is basing his prediction on market dominance. He said that Solana could command 10-20% market dominance in a hypothetical situation.
The Youtuber, who currently has more than 400,000 subscribers, maintains that Solana could reach $375. In the same breath, he thinks Ethereum could reach as much as 25% market dominance and $15,450. In the best-case scenario, the optimist believes that Solana could trade at $739, given a market dominance of 20%.
While it may sound too good to be true, Solana remains a formidable layer-1 that rivals Ethereum. The network is built on a promise of high scalability. Recently, Solana integrated its first layer-2 scaling solution, Nitro. The layer integrates Cosmos and IBC platforms.
Aside from the fundamentals and rosy predictions, Solana is a bearish market. It has retested key support, and its TVL is also in the red. At the time of writing, Solana TVL was down 1.22% in the past day at $1.29 billion, according to data from DeFi Llama.
SOL retests $32 support
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From the technical chart above, SOL has retested support. The digital asset is trading below the 20-day and 50-day moving averages. The duo MA could present points of consolidation to the upside. Further, the Stochastic Oscillator has entered the oversold zone, currently below 20.
Despite Solana being under bearish pressure, it remains a key token to watch in the crypto space. How soon the token can turn around its fortunes is a matter of debate. At the moment, the current price is not a good entry point, and patience should be exercised until a trend reversal is seen.