3 reasons why Solana (SOL) could hit $275 in Q4

Solana, SOL, Chainlink, TVL, pennant
image from medium.com

Key Solana Takeaways:

  • Solana could see a new leg up in Q4, despite the recent consolidation phase.
  • Orancle network Chainlink integration might be beneficial for the platform.
  • Technical indicators also suggest an uptrend underway.
  • The DeFi platform’s recovering TVL backs the bullish stance.

YEREVAN (CoinChapter.com) – SOL, the native token of Dapps blockchain platform Solana, has been consolidating since establishing an all-time high (ATH) of $216 on Sep 9. However, several factors hint at a bullish continuation that could take the digital asset as high as $275 in Q4 2021.

The “Ethereum killer” has already integrated oracle network Chainlink’s price feeds. They went live on the Solana Devnet back in Aug 2021. However, the Chainlink team plans to “ship the mainnet integration” in Q4.

Chainlink chief Johann Eid and Solana Labs CEO Anatoly Yakovenko agreed that the upcoming integration will “catalyze a new tier of advanced high-throughput DeFi applications.” The executives also believe the mainnet integration will shift mainstream adoption into a “pivotal new gear.”

Mr. Eid also noted that the demand from Chainlink developers has been “enormous.”

We’ve gotten insane demand from hundreds of applications; lots of people are building on top of Solana – synthetics platforms, futures platforms, DEXs, lending – basically any DeFi use case you can think of is building on top. They want super-high frequency; they want super-low fees, nonexistent fees most of the time.

said the CEO

Solana’s CEO expressed his excitement for the mainnet integration and mentioned that it would allow the DeFi platform access to a more extensive client base.

I think the best version of Chainlink is going to be on Solana. […]I’m really excited for that to happen.

said Mr. Yakovlenko

Another factor to support the Solana bulls is a technical indicator on the daily chart that could take SOL up another 60% by the end of Q4.

Also read: Newsflash: Bitcoin hits a fresh milestone high, crosses $66.1K on ETF FOMO

#2 Bullish technical indicators for SOL

For the previous six weeks, SOL traded in a pattern called a bullish Pennant. The latter consists of two converging trendlines with a similar slope and promises an uptrend once the formation is exhausted.

In hindsight, Pennants occur after a prominently-vectored price action, as opposed to Symmetrical Triangles, which are similar in shape. Solana’s Pennant formed after an explosive rally of over 700%, so the bullish bias might continue.

Solana daily chart featuring a bullish Pennant. Source: SOLUSD on TradingView.com
Solana daily chart featuring a bullish Pennant. Source: SOLUSD on TradingView.com

Moreover, SOL broke out of the pattern in a new leg up on Wednesday, in tune with the prediction. The Pennant might take the digital asset on an uptrend equal to the height of the Pennant, which could bring SOL to $275 before the quarter is over.

The smart contract platform’s recovering TVL (total value locked) also supports the prognosis.

Also read: Solana eyes bull run towards $275 despite SOL undergoing 35% correction

#3 Solana’s Recovering TVL

As the DeFi sector’s collective TVL surged to a new all-time high ($233.8 billion), Solana followed suit and registered its own record at $12.4 billion. The Dapp blockchain saw its previous all-time high on Sep 12 ($12.2 billion) but consolidated ever since.

Solana's growing TVL. Source: DefiLlama.com
Solana’s growing TVL. Source: DefiLlama.com

Projects like staking protocol Marinade Finance and lending protocol Larix contributed to Solana’s TVL growth throughout the previous week.

Projects atop Solana. Source: Solana on DefiLlama.com
Projects atop Solana. Source: Solana on DefiLlama.com

Also read: Solana rises 20% after listing on South Korea’s largest crypto exchange

All the reasons listed above suggest a surge of another 60% for the smart contract platform. Should the prediction pan out, SOL/USD pair could trade for $275 by the end of the year.

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