In the bull market cycle of the cryptocurrency market, with Tether minting $2 billion USDT, the price pattern of Solana (SOL) suggests it could potentially surge by 810%.
Although Solana's strong rally in the past few weeks may temporarily slow down as it approaches a critical resistance level, the bullish sentiment around SOL remains strong and is expected to continue growing with the rise of the meme coin craze. As long as the market's bullish sentiment remains stable, investors have reason to believe that Solana's price will continue to rise.
Furthermore, the persistent pattern indicates that Solana's price has the potential for a significant surge in the future due to the constant minting of billions of dollars in USDT by the stablecoin company Tether to meet market demand. This trend could drive SOL to further break out, reaching a 810% gain.
Does Tether's USDT minting affect Solana's price?
Tether, the company behind the USDT stablecoin, minted $2 billion in less than 24 hours, all of which was sent to exchanges. Satisfying the inflow of demand is crucial, as purchasing cryptocurrencies requires stablecoins. Tether has done this in the past bull markets to meet the bullish demand from retail and institutional investors.
In the past, Tether's (USDT) minting has often had a significant impact on Bitcoin's price. According to historical data, Tether's large-scale minting has often led to a local bottom in the market, followed by a large-scale rebound in Bitcoin's price. The reason behind this trend may be that Tether, as a stablecoin, can provide more liquidity to the market, driving capital inflows into Bitcoin and other digital assets.
If this pattern continues to repeat, then after Tether recently minted $2 billion USDT, Bitcoin's price could see a significant increase. With Bitcoin's rise, top Altcoins such as Ethereum, Solana, and Dogecoin may also rise, benefiting from Bitcoin's price breakout.
In this case, investors can pay attention to the relationship between Tether's minting volume and Bitcoin price fluctuations as a reference for short-term trading. Additionally, as market capital flows into Bitcoin and Altcoins, these assets' prices may see further upward movement.
Let's explore how high Solana can rise next, as technical analysis predicts that SOL price could surge 810% in this cycle.
SOL Technical Analysis: Solana Poised to Surge 810%
Solana's price forecast shows that the asset is currently in a critical price discovery stage. After experiencing a prolonged consolidation in the $145 to $240 range, the price has successfully broken through a key resistance level, opening the door for further upside.
The recent weekly candlestick chart shows a strong bullish body, demonstrating the dominance of the buying pressure. The breakout candle was accompanied by trading volume above the average, indicating that this breakout is decisive and further strengthens the bullish trend signals.
Furthermore, the recent breakout is seen as the starting point of the third impulse wave in Elliott Wave theory, suggesting that Solana may be entering an extended phase with greater upside potential. This phase could provide more profit opportunities for investors, while also signaling that Solana may see a more significant upward move.
During the uptrend, Solana's price is expected to encounter resistance around $325, $650, and $1,946. The last target is based on the height of the bullish flag pattern, which would represent an 810% increase from the current price.
Conversely, SOL price may find support around $240 (the recent resistance level that now acts as support) and $145.
Factors Fueling the Projected 810% Price Surge
Solana is one of the top 10 best-performing cryptocurrencies. Since the beginning of this year, SOL's market dominance has significantly increased by 22%, surpassing Ethereum (ETH), BNB (BNB), and XRP (XRP).
DeFi investors point out that after Solana's network surpassed Ethereum and all Layer 2s in DEX trading volume, "SOL price discovery will melt."
Additionally, Solana successfully set a new all-time high at the start of the major bull market phase, suggesting that SOL price could surge and reach $1,900 by the end of this bull cycle.
