Lark Davis explores whether Solana (SOL) remains a good investment as it approaches new all-time highs. At the time of recording, Solana’s price hovered near $245. The asset has seen a strong breakout this year, pushing past key resistance levels and nearing price discovery territory. Davis highlights that key technical indicators, such as RSI and MACD, suggest Solana still has significant upward momentum.
Solana’s fundamentals are driving its rise. It currently accounts for 45% of on-chain decentralized exchange (DEX) volume across all blockchains, surpassing Ethereum and all Layer 2s in metrics like monthly and 24-hour trading volumes. Meme coins within the Solana ecosystem, like BONK, are also contributing to its popularity. Davis describes Solana as the "darling of this cycle," akin to Ethereum’s role in previous cycles.
Using Fibonacci extensions, Davis outlines potential price targets for Solana this cycle:
-
$400–$425 (short-term)
-
$675–$700 (mid-term)
-
$920–$1,100 (peak)
Achieving the $1,000+ target would require a market cap near $670 billion, which Davis admits is ambitious but not impossible given crypto’s speculative nature. He emphasizes that Solana’s current market cap has already reached a new high of $115 billion, reflecting increased coin supply since the last cycle.
For those looking for higher-risk, higher-reward plays, Davis suggests exploring Solana ecosystem projects like Jupiter and meme coins such as "WIF". While Solana offers a safer bet, ecosystem tokens may outperform during major price rallies.
Davis concludes that while Solana’s potential remains high, investors should watch for bearish MACD signals to time exits and consider diversifying into related assets for amplified gains.
