Altcoin investors watched the sudden rally in Solana (SOL) and BONE ShibaSwap (BONE) prices today. Crypto analyst Caleb Franzen is expecting more from Solana, who left behind $22 with the latest rally.
Caleb Franzen sets new target for Solana
SOL price has been making a heavy effort to retrace its November 2022 losses lately. Its price gained double-digit value today, independent of the overall market. Along with the upward momentum, it surpassed the critical $22 resistance. Most analysts argue that this sudden rally in SOL price is due to its success in the NFT sector. Others have argued that the potential reopening of the bankrupt FTX exchange in 2022 contributed to the price increase.
Caleb Franzen, who has updated his forecasts with the recent rise, suggests that the Solana price has started another bull attempt. According to Franzen, there are three key steps Solana must follow to realize this potential price increase.
- Step 1 involves breaking the trendline, which typically means a change in market sentiment.
- After the trendline is broken, Step 2 suggests that the SOL should use this newly created trendline as a support level.
- Finally, in Step 3, Franzen sets a new local high for Solana at around $27.
Other factors affecting altcoin price
SOL price is down 91.56% after hitting the ATH level of $260.06 on November 6, 2021. On the other hand, it has registered an impressive increase of 4422.71% since its historic low of $0.5052 recorded on May 11, 2020. The Solana ecosystem has faced challenges recently, including when the SEC filed multiple charges against Binance, which includes Solana. However, positive developments such as Drift Protocol’s announcement of liquid staking for SOL tokens pushed the price up to $20.
Also, according to Messari’s data, Firedancer, a standalone validator client created by Jump, powers Solana on the DeFi front. The data suggests that Firedancer can increase DeFi maturity by reducing latency. Thus, it shows that it can bring decentralized exchanges closer to parity with centralized exchanges.
By reducing latency, Firedancer is able to perform faster transactions, which can improve the overall user experience and attract more participants to the network. This increased efficiency potentially increases the speed of decentralized applications built on Solana.
In addition, the fact that decentralized exchanges are closer to the central exchange parity brings several advantages. Users ensure smooth experience as they can enjoy speed and liquidity levels similar to those offered by DEXs. This can increase liquidity on decentralized exchanges. It may also attract more investors to join. Thus, it can expand the ecosystem and encourage greater adoption of Solana-based DeFi protocols.
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