Elite Trader: Solana’s Fundamentals Outperform Price Drop, Making It a Buy

Elite Trader Updates Solana Price Prediction – Pullback Seen as Buying Opportunity Amid Strong Fundamentals

A prominent cryptocurrency analyst has revised their Solana (SOL) price outlook following a recent pullback, arguing that the decline reflects short-term technical challenges rather than a fundamental weakness in the network. Despite a 10% weekly drop in price, pushing SOL below $203 from its recent high near $210, the trader emphasized that on-chain metrics such as total value locked (TVL) and user activity remain robust. This divergence between price action and underlying network performance has fueled optimism that the correction is temporary.

The price decline has coincided with bearish technical indicators, including a bearish RSI reading and a flattening MACD. However, the analyst noted that these signals are not indicative of a broader sell-off. Instead, they pointed to Solana’s transaction throughput—averaging 200,000 transactions per second—as a key differentiator. The network’s ability to maintain high throughput despite the price drop underscores its utility in decentralized finance (DeFi) and enterprise applications. Additionally, long-term holders have realized gains exceeding 5,000%, suggesting a resilient base of support.

The trader’s revised forecast hinges on Solana’s ecosystem growth. Recent data shows that Solana’s TVL has increased by 12% month-over-month, driven by renewed interest in DeFi protocols and cross-chain bridges. The network’s low fees and high-speed transactions continue to attract developers, with over 1,200 active projects now built on Solana. Analysts attribute this growth to strategic partnerships, including a recent collaboration with a major cloud provider to expand Solana’s infrastructure.

While the current price action has lagged behind Ethereum’s rally, the trader argued that Solana’s fundamentals position it for a rebound. “The recent dip has created a more attractive entry point for investors,” they stated, citing a 20% increase in on-chain staking activity as evidence of renewed interest. The trader’s target price for SOL has been adjusted to $220–$230 by year-end, up from a previous $200–$210 range, reflecting confidence in the network’s ability to capitalize on its technical advantages.

Market participants remain cautious, however, as broader crypto volatility and regulatory uncertainties persist. The trader acknowledged these risks but highlighted Solana’s relatively low market capitalization compared to Ethereum and Bitcoin as a potential catalyst for outperformance. “SOL’s lower valuation and high utility make it a compelling candidate for a rebound,” they concluded.

Source: [1] Solana, AVAX underperform while RTX emerges as the favourite for 40× growth (https://invezz.com/news/2025/09/04/sol-avax-underperform-while-rtx-emerges-as-the-favourite-for-40x-growth/)