Solana (SOL) price predictions are turning increasingly bullish, with the cryptocurrency still substantially below its December peaks, but with chart analysis hinting at upside price risks and widely followed crypto personality Arthur Hayes commenting that it may be time to “get back on the Solana train”.
Hayes made the post earlier this week when Solana was trading in the $94s.
I think it might be time to get back on the train fam. Maybe after a few US banks bite the dust this weekend. pic.twitter.com/SxCwK3BVYB
— Arthur Hayes (@CryptoHayes) February 1, 2024
The Solana price has since risen to end Friday around $100.
Hayes caveated his comment by saying “maybe after a few US banks bite the dust this weekend”.
He was likely referring to a recent resurgence of concerns about regional banks in the US.
NYBC’s share price plummeted this week after an ugly earnings release, weighing on the KRW Regional Banking Index.
The index started the week above 109 but closed the week under 100, its lowest since mid-December.
Troubles in the US banking sector prompted a huge rally in crypto markets in March 2023.
Bitcoin and cryptocurrencies more broadly were viewed as a safe-haven alternative to the fractional reserve banking-based traditional financial system.
While Bitcoin would probably lead if the bank crisis returns, Solana is also a strong candidate to perform well.
Solana Price Predictions – Where Next for SOL?
Bank troubles could become an increasingly important theme in the next few weeks.
In early March, the Fed is axing a liquidity support program it first launched in March 2023 to help troubled regional lenders.
The end of the so-called Bank Term Funding Program (BTFP) could beset new issues for the sector.
And that could drive cryptocurrencies like Solana’s price higher.
In the meantime, the Solana price is likely to benefit from positive technicals.
The Solana price recently broke above a key short-term downtrend.
It also recently saw a strong bounce from its 21 and 50DMAs.
This bounce comes after it also bounced from key long-term support in the $77-80 area earlier this month.
Technical analysis suggests a strong likelihood of a near-term rally towards December highs around $125.
Solana (SOL) Price Chart / Source: TradingView
In wake of recent positive Solana ecosystem developments, such as surging on-chain activity as traders flock to benefit from successful airdrop campaigns such as this week’s Jupiter (JUP) token launch, Solana price predictions look set to remain optimistic.