Solana (SOL) has demonstrated impressive performance following its ability to navigate through the recent market turbulence. The token dubbed the ‘Ethereum Killer’ saw a price increase, surpassing Ethereum, despite market consolidation. SOL reached over $200 for the first time since December 2021, marking over 800% year-to-date increase in value. During the bullish market, supporters and investors are hopeful that the token will reach $500. If you are considering investing in cryptocurrency, you might be curious about how your portfolio would be affected if the price of Solana reaches $500. Let’s delve into possibilities. 

Solana Price Market Performance

Today, Solana price is $204, showing a 9.89% growth over the last 24 hours. It has seen a trading volume of $10.5 billion over 24 hours, experiencing a 12% increase. The present position on CoinMarketCap is ranked 4th, with a market capitalization of $90.9 billion. In just one week, SOL’s value has increased by 37.54%, and it has seen a growth of 829% year-to-date. Although the growth has been notable, the token price is still 22% below all-time high.

Top Reasons Behind Solana Price Surge

Solana (SOL) witnessed a surge in network activity surpassing Ethereum, driven by demand for Solana-based memecoins. The total trading volume reached $3.52 billion, with new memecoins like Book of Meme (BOME) gaining popularity quickly. Solana’s DeFi TVL grew by over 80% in the last month, reaching $3.8 billion, making it one of the top five DeFi networks. The number of SPL tokens on the Solana network also hit an all-time high. However, trading meme coins on Solana can be risky, as some investors experienced significant losses due to FOMO trading. As the price of $SOL surged, large investors have been capitalizing on profits by selling their holdings. One whale deposited 200K SOL into Binance and still holds a significant amount of SOL, with a portion staked.

What Will be My Portfolio if Solana Price Reaches $500

Investing $1000 in SOL at the current rate of $204 per token will result in approximately 4.90 SOL tokens. Should the value of SOL almost double from $1000 to $500 per token, your 4.09 SOL tokens would be worth a significant amount, reaching up to $2450. To calculate the total asset profit, you need to deduct the $1000 initial investment from either the last sale price or the total amount of profit, resulting in $1450. This measures an increase of about 145% in percentage.

If you increase your investment to $2000, you will receive approximately 9.80 SOL tokens, equal to the market value of $1000 capital. If the token’s price hits $500, you could potentially earn $4900 from your investment. By deducting the assessed value of the vehicle from the initial payment of $2000, your total earnings will come to $2900, resulting in a 145% increase in profits.

Finally, an investment of $5000 provides access to approximately 24.51 SOL tokens. At this pace, with an initial investment of $500, you will accumulate a substantial fortune of $12255. After deducting the initial investment of $5000, your total profit amounts to $7255, equating to approximately a 145% increase.

However, these calculations assume stable conditions and exclude any fees or taxes. It’s essential to consider all factors and conduct thorough research before making any investment decisions.

Price Forecast: Will Solana Hit $500?

Based on technical analysis let’s predict SOL’s price, evaluating the possibility and timing of the coin reaching $500. 

Both short and long Moving Averages indicate a buy signal, demonstrating bullish sentiment. Analyzing EMAs and SMAs for various time frames can provide insight into potential future buying and selling opportunities.

The RSI is currently at 89.03, signaling that it is in the overbought zone but with a neutral sentiment. There are speculations indicating a potential shift from bullish to neutral trend.

If Solana’s price undergoes a sharp decline, it could potentially reach a minimum of approximately $33.02. This level is seen as a solid support zone that could see an increase in buying pressure and acts as a barrier against any further decrease in movement.

On the other hand, if Solana’s price increases steadily, it is expected to reach approximately $202.26. This trading range indicates a congested area where selling pressure may increase, preventing further price advances.

While the current analysis shows that Solana has a strong support and bullish momentum, which could potentially propel its price toward higher resistance levels, it’s important to note that reaching $500 would require nearly doubling its current price. Technical indicators provide favorable conditions, but achieving such a milestone would depend on various factors, including market sentiment, adoption, and broader cryptocurrency trends.

The post What will be my portfolio if Solana Price Hits $500? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am