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In a recent tweet, crypto ranking platform CoinGecko presents a bold upside scenario for Solana (SOL), the seventh largest cryptocurrency by market capitalization.
CoinGecko presents a potential scenario whereby Solana matches Ethereum in its market capitalization. Ethereum's current market cap is more than five times that of Solana — 5.57 times, according to CoinGecko.
Solana's market cap is $47.26 billion, while that of Ethereum is currently at $263.28 billion. In a potential scenario whereby Solana matches Ethereum market capitalization, a price increase might follow that would match the 5.57x increase in market cap. In this case, a potential 5.57x increase in price will see Solana surpassing $400.
According to CoinGecko, "SOL at the market cap of $ETH would be a 5.57x gain to $458." Ethereum price is currently $2,193.
SOL short-term price action
At the time of writing, Solana was trading down 2.79% in the last 24 hours to $82.46 as the broader crypto market reversed an earlier rise in the week.
In the last 24 hours, a total of $263 million has been liquidated in crypto positions, most of which are long traders expecting prices to rise even further. According to CoinGlass data, $166 million in long positions were liquidated, while shorts came in at $97 million.
Solana saw a sharp rise earlier in the week, reaching $87 in Tuesday's session. However, the rise was short lived, with the Solana price dropping afterward.
The flat moving averages and the RSI below the midpoint do not give a clear advantage either to the bulls or the bears. If the SOL price can break above the daily MA 50 at $85, it might rise to $98. Buyers will have to be able to rise above that to gain the upper hand.
On the contrary, a break and close below the $76 support might favor bears. This might see Solana drop to $67 and subsequently to $50. Broader market sentiment will be watched as regards Solana's short-to-medium-term price action.
The Federal Reserve continues to highlight upside inflation risks alongside softening labor conditions, which might keep the higher-for-longer rate narrative steady.
Dan Burgin
U.Today Editorial Team
