$500 Solana Is Sooner than We Think (Market Update)
In this market‑update video, The Art of Crypto presents a bullish case for Solana, arguing it could approach or even surpass Ethereum’s valuation during the current bull market. He breaks down the daily chart into three‑four critical price zones—range high, range low, a sell‑side liquidity cluster, and a $164 breakout level—explaining how market structure suggests a potential higher low and a first higher high since mid‑March. The presenter recommends entering near the $130 Fibonacci golden pocket, with a stop loss below $110, yielding a risk‑reward ratio that could exceed 18:1. He outlines price targets: a conservative $500 level (aligned with market‑cap expectations), a $420 resistance, and technical standard‑deviation expansion targets around $255‑$305, while noting a fundamental 5× upside to $700 if Solana reaches Ethereum’s current market cap. Seasonal dynamics are discussed, highlighting historically weak Q2/Q3 liquidity, holiday‑induced volatility, and an anticipated liquidity return that could set up a bottom and a parabolic Q4 rally. The video then shifts to a brief DeFi overview, noting AAVE’s strong recent performance, CRV’s emerging higher‑high pattern with pull‑back entry zones, and RUNE’s continued bearish structure. Specific trade setups for CRV (entry near 0.24, targets up to 0.67) and AAVE (pull‑back to the true yearly open at 112.5, targets 195 and 240) are provided. Finally, the presenter promotes his Twitter and a limited‑time Alpha Group subscription for deeper trade ideas.
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What's up guys, welcome back to another market update. Today we're talking about Solana. Solana is arguably the most valuable chain on the crypto ecosystem. Some would say behind Ethereum, I would say above Ethereum. And the point being that Solana is going to get somewhere close to Ethereum sometime during this bull market. I also believe that this is one of the top tokens that you can be buying post-dip just because of how high conviction it is. And so in this video, we're going to look at potential entry points for Solana and potential targets for Solana. And also, once we're done with that, I'm going to give you a quick little sneak peek into an upcoming narrative that I believe is going to do pretty well, and the numbers have shown that as well. So without any further ado, let's dive right into the video. So taking a look at the daily chart, there are really only 3 levels that truly matter, or like 4 levels that truly matter for Solana. That's going to be this range high over here, that's your range low which you just recently took out and took out all of the liquidity alongside with it, and then you have a further sell-side liquidity level over here on the daily chart that you could potentially look at. And then lastly, you have this level right here at $164. Essentially what this level indicates is that you really want to break above this level in order to potentially come down for a retest and potentially go higher. But the key point here is that we take a look at just Solana market structure, we can see that, okay, you have a high there, potentially a low there. Here you have your lower high, and then boom, you have your lower low. And if we look at structure just within the context of these 4 areas, then at the moment this is starting to look like another lower high. However, this could potentially, right, potentially be higher low. And if the price were to break above that level right there, you would form the first higher high since basically 16th of March, which is essentially the last half year. If you're a bull on Solana, this is something you really want to see happen. And arguably, seeing a break above this level here before buying the retest is likely the higher probability move and honestly the better move. That's what that level is about. But just going back to the big picture for a moment, you can see that if you take a look at this level right here, you can see that the majority of the sell-side liquidity has already been taken out. The probability that Solana goes lower from here is much lower than it goes higher. Because simply put, well, the majority of the people— I want you to imagine this for a moment— if you went long at any point here, or even any point here, where would you realistically set your stop loss? Probably below these lows. And the market makers know this as well. They might not have direct access to the liquidation data, but they sure as hell know that the majority of people tend to think the same way. And when that happens, you have a pool of liquidity that concentrates below these levels. And once you take them all out, guess what? The people who are in profit, they got stopped out. People who are still in the trade, they got stopped out. And the people who are holding on to really high leverage longs, well, Guess what? They also got liquidated. And this is proven just by the fact that you had hundreds of millions of dollars that got liquidated after the dip that happened here. And so the probability that this thing goes higher, much more likely. Another thing to keep in mind is that we're in Q3 right now. Another thing you need to know about crypto is that historically speaking, Q2 and Q3 are horrendous months, or rather quarters, for crypto. This can be seen also just within the price action of last year. If we just take a look at from July till pretty much October, Solana actually went through a pretty severe retracement of about 47%, although that is nothing compared to what we're dealing with today. But You can see that the moment we start getting into Q4, i.e., October, you know, the markets really start going parabolic. And at the moment, I do believe that this is going to play out a similar way in terms of Solana. Q2, Q3, everyone's out on holiday, nothing's happening in the markets, liquidity is super short, and that's why you have these big long wicks and why the price seems to be more volatile than before. But then in about 10 days from now, or about 2 weeks from now, the market makers are all going to be coming back from their holidays in the Hamptons, the South of France, whatever, and liquidity is going to be back. This is the perfect moment for a bottom formation to form heading into Q4. And potentially next year's Q1 to bring Solana to absolute new heights. And now that we have this bullish thesis in mind, let's talk about the entry for a moment. The entry is super simple. From this low to this high here, we're pretty much expecting a new higher low to form around this area. It could be this area, it could also be this area, it could also be this area. Now the reason why I picked these 3 areas is because this is the golden pocket of the Fib. And personally, I'm really looking towards the 130 level. Called it on my Twitter on a short from 150 down to 130, and currently it's still playing out. Although it's taking more time than expected, I do believe that this will be the ideal zone to be buying into Solana. And by the way, want to get access to all the trade ideas and market updates that I'm posting, feel free to follow me on Twitter. That's where I'm posting the latest stuff. But anyways, this is going to be the ideal entry. Now the invalidation point in this case is going to be below $110. Like obviously if we are expecting this to be a potential higher low, then we don't want to see a lower low form on, you know, whatever time frame. And so this remains the invalidation level. So you have about a $20 stop loss, and given the fact that we are looking at potential hundreds of dollars in terms of the target for Solana, and you have On your hands, a really good risk-to-reward investment/trade. For potential targets, we're gonna have to zoom out. Before we do zoom out onto the daily chart, it's important to first understand the market cap of Ethereum versus Solana. Currently, Solana is 1/5 the market cap of Ethereum. One thing to understand is that at the moment, in terms of pretty much every single metric, how cheap it is to use, how fast it is to use, how many protocols are being built on Solana, how much revenue is generating, Solana by far, right, takes over Ethereum in almost every major statistical category. And so it wouldn't be a stretch to say that Solana will eventually get to the point where Ethereum is right now. That is only a 5x. And so even if you just look at that, that's $700 per Solana. Now even if you are more conservative and you don't think that Solana is going to get that far, then a couple hundred billion dollars is very likely also for Solana. Like by far, if there is one coin that hits like $200-300 billion market cap outside of Ethereum during this bull run, it's going to be Solana. And everyone already has this target anyways. Like a $500 Solana is an easy play. And if you just look at that, this is potentially an 18x trade. Like for every $1,000 that you're risking in this investment/trade, you are getting back $18,000. And for most people, that is quite Quite a good trade. Obviously, the target has got to be 500. Like this has already been telegraphed all over the world. You have 420 that I believe is going to be some kind of like really strong resistance. Like you are definitely going to get rejected off this area. It's just how crypto works. 420, 420.69 even. Now that we have the fundamental targets out of the way, let's perhaps take a look at the technical targets. And technical targets, we can see that if we draw a standard deviation expansion outwards, we have targets of around 255 and around 305. And so these are levels that you can potentially take profit at. And these targets are you know super simple, right? This is based on math, and it's just. the way that markets like to move. Essentially, this is just drawing a range deviation and just like expanding it outwards by 1, right? That's essentially all it is. If you are wondering why I'm setting my targets a little bit below these range deviations, it's because we wanna take profit before other people do it. Obviously, if everyone is looking at the same level, guess what? Your orders are probably not gonna get filled. This worked really well for me in the last bull run, and I suggest you do the same as well. Just take your profit a little bit before everyone else does it. Now, when I say this is based on math, this is what the algorithms are programmed on to deliver price. And so if you just go back onto pretty much any situation in the past, you can see that what you will find is that a lot of the levels where price finds a top or gets rejected at or lines up with some kind of liquidity level or some kind of PD array or some kind of area of value in general tends to line up with standard deviation levels. It's just the way the market's programmed. If you are from Forex, this is even more of an obvious effect. In crypto, not so much, but still very much a thing. Now that we're done with Solana, just to give you a bonus for staying till the end of the video, let's talk about DeFi. In recent weeks, DeFi has been getting a little bit of a resurgence, right? Specifically AAVE. Now you have CRV, you have RUNE, but honestly the price action on both of those are not amazing. Let's pull it up. RUNE is very much still in, you know, bearish market structure. You have lower high, lower low. Nothing's changed on Rune yet. The level that you want to see for Rune is if this gets taken out, just like Solana, then okay, we'll start looking at Rune. But until then, very much still in bearish market structure. And if you buy into Rune right now, you are essentially buying into a falling knife, right? You're buying into weakness, you're not buying into strength. It's not something we want to do when it comes to trading. Now CRV, on the other hand, now this one looks a little bit better because right now you have already formed a higher high, and potentially you can come back down to form a higher low before the price takes off. And CRV, you can see that the true— I believe this is the monthly open lines up with the 0.618. And so this is going to be the zone that you're going to want to look at. Essentially, price returns back to 0.24. This could be a really high probability trade, high risk reward as well, and targeting just previous liquidity levels. I would assume here that one stands out to me, but otherwise you're looking all the way back at 0.67. So this right here is an easy 7-hour trade and something that you should set your alerts for. Now that's CRV. The main player in terms of the DeFi resurgence has been AAVE. You can see just the stark difference that AAVE has compared to even CRV. AAVE has been up pretty much 75-80% since the dip lows. And with DeFi gaining way more mindshare than we expected, basically going from 7% to 14%— and this, by the way, is in comparison to meme coins, which most people believe is the top narrative throughout this bull run, or it should be the top narrative given how many people are talking about it— and yet DeFi is only right behind meme coins at 12%, where meme coins hold 13% in the last 30 days. This page, by the way, like, shout out to Kaito. I would highly recommend you guys follow this page. They do like super cutting-edge research, and they basically tell you what nobody else is seeing. And in terms of DeFi, this is something that you can't really see unless you're aware that this is gaining market share. This is very much still a sleeper narrative at the moment, but based on what the data is telling us, could very well be one of the top narratives heading into Q4. And if you wanna take advantage of this narrative, then AAVE is the way to go. AAVE has been essentially in a range since last year, October, and you have tested the range low many, many times. And currently, just like Solana, you have taken out most of the liquidity at the range lows, you have range highs, but most importantly, unlike Solana, AAVE has a long way to go until it hits its previous all-time high. For example, the first potential resistance level would be at $2.40, which is double the price of where it is right now. You also have this area here, and you also have this area here. For those people who have been following AAVE throughout the bear market, you know that this has been arguably one of the top protocols in terms of value, or like just fundamentally strong, like utility tokens in the entire market. And all of their numbers check out. They have been growing steadily. More and more people have been using the protocol. Lending numbers are all up. Profit, revenue, it's all up. If you just take this into consideration, then AAVE could very well be one of the top performing coins heading into Q4. And in terms of potential entries that you want to mess with AAVE, one thing's for sure, Before we get into that, you have market structure. Boom! High high, high low, high high. This very much just a liquidity sweep. But the point is that currently this you know you could say that this is the higher low. I'm not gonna I'm gonna even bother with that. Point is you have broken above this high right here, and so a retracement back into this high or potentially even back to the true yearly open. This is not the weekly open, by the way. This true yearly open would give you an opportunity to take a trade. And honestly, this is where I would be looking at personally right here at the true yearly open at 112.5 targeting a previous high and also potentially a range expansion outwards. So And that also leaves our target with, guess what? Right around the level that we drew, right? I wasn't kidding when I said that these standard deviation expansion levels tend to line up with key liquidity levels, key resistance levels, whatever, right? Everything is calculated in these markets. Nothing is done by chance. This is the way the algorithms are programmed. You have your first TP potentially at 195 and a second TP at 240. And if you guys want me to talk more about DeFi, I will do so in a following video. Otherwise, this video is going to become way too long. Now, if you're still here and you want to get access to all of my trade ideas as well as my exact trade setups, market updates, as well as from my team, I'm opening up the Alpha Group for a limited time this week. If that is something that you are interested in, click the first link in the description box below, reply Alpha to the first email, and we will set you right up. But otherwise, thanks for watching this video. Drop a like if you enjoyed it, does really make my day, but I'll see you in the next one.
