An analyst highlights a crucial element that will determine the long-term direction of the market’s evolution, with Solana at the forefront.
Following a short surge, the price of solana has cooled off and is currently stable, down 0.7% over the last day. However, taking a broader view, Matthew Sigel, an executive at VanEck, believes that Solana has the potential to surpass Bitcoin.
With today’s choppy trading, Solana has maintained its 4.44% gain since last Friday, showing resilience in the wake of the recent market meltdown and continuing to rank among the top altcoins during this time.
Notably, during the last day, the altcoin’s trading volume increased by 21.39% to $1.7 billion.
VanEck Exec “Early Bull” on Solana: Key Factor Driving SOL Price
In a recent Bitcoin Macro interview, VanEck executive Matthew Sigel stated that layer-1 networks are poised to occupy “99% of the economic value” of the market share in the long term.
Sigel noted VanEck’s investment in the asset and emphasized Solana as a pivotal player in this wave, characterizing the company as “very vocal and early bulls on Solana.”
With the expectation that a “large share of the economic value accrues to Bitcoin plus one or two layer-1s, and then with the riskier capital, we go hunting for DApps,” VanEck is currently “overweight” in investments made on top of Solana.
Sigel listed the cryptocurrencies that have the “best chance at mass adoption” as a major contributing factor to the long-term development of the market.
The Solana ecosystem, in particular, positions itself to be one of the biggest beneficiaries, given its robust development and growing adoption.
Solana Price Analysis: is a Breakout Coming?
Upon closer inspection, technical indicators seem to reinforce a positive outlook for Solana long-term.
The most important development since late 2021 is the cup and handle pattern, which indicates a brief pause in the overall uptrend and supports a bullish continuation of Solana’s long-term price appreciation.
Because of the prevailing uncertainty in the market, the SOL price is still trapped inside the channel that forms the handle, consolidating before making another move.
This pattern indicates that a breakout is imminent, but because there is still room to fall within its channel, it also prepares the ground for further short-term downside.
Something that lines up with recent analysts’ anticipation of a difficult September, followed by an explosive final quarter of the year as traders set their gaze on an altcoin season kick-off.
Upon a breakout of this pattern, eyes will be set on new all-time highs with a SOL price target of up to $400.