SOL Price Forecast After Magic Eden Reaches $1.6 Billion Valuation

Key Insights:

• SOL is ranking as the ninth largest cryptocurrency in the world by market capitalization at $11.6 billion.
• The rally comes after the leading NFT marketplace on Solana, Magic Eden reached a valuation of $1.6 billion.
• The coin has been eyeing the $40 price level since June 1.

Solana, the Layer 1 blockchain that aims to increase scalability through faster  transaction settlement times, has seen its native cryptocurrency SOL rally over the last consecutive days. This has led to the coin reaching a market capitalization of $11.6 billion at the time of writing.

While SOL remains 86% below its all-time high (ATH) achieved in November 2021, the recent uptrend can be attributed to Magic Eden – the newly-minted crypto unicorn that also happens to be the leading non-fungible token (NFT) marketplace on Solana – reaching a valuation of $1.6 billion.

The eye-watering valuation comes as the company raised $130 million in a Series B funding round co-led by Electric Capital and Greylock.

Previously, the project launched Solana Pay which allows users to create a storefront and accept low-fee global payments directly into their wallets. The resultant effect of this launch has been integration with over 600 merchants – no doubt accelerating Solana adoption whilst potentially contributing to a price rally.

Price Action

SOL started its journey in November 2020 at $0.7768.

The coin is currently trading at $34.20 and ranks ninth in the list of cryptocurrencies worldwide by market capitalization.

Notably, SOL dropped to lows of $25.86 last week as the price of the world’s largest cryptocurrency, Bitcoin (BTC) concomitantly dropped below $20,000. As well as falling to a higher low last weekend, a bearish start to the day has seen SOL drop by 9.69% over the last 24 hours.

On June 1, the token fell from $45 to a low of $38.43 and has since been eyeing the $40 price level. This drop was mainly due to the collapse of the Terra UST and LUNA tokens that wiped out nearly $60 billion in investors’ capital.

Technical Indicators

While Solana may have surged 44% in the four days preceding June 21, technical analysis shows that short-term sentiment on SOL is bearish, with 11 indicators displaying bullish signals compared to 17 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving mostly sell signals. The relative strength index (RSI) stands at 42.5.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of a Solana crypto price prediction, SOL could see its price rising to $30.560 by July 2022, reaching $1.221 in January 2024 and hitting $0.831 by January 2025. A bullish forecast would place SOL at $53.91 by January 2024 and $65.70 by January 2025.