Solana (SOL) Weekly Structure Resets, Keeping $1,000 Cycle Target on the Table

Solana (SOL) showed early signs of stabilization on Sunday, February 8, as experts pointed to defended long-term support following months of tight consolidation. 

The price action suggests fading downside pressure, indicating potential seller exhaustion rather than a breakdown in Solana’s broader market structure.

According to crypto analyst Trader Tardigrade, Solana’s weekly chart may have completed a corrective phase after holding a major higher-timeframe support zone.

Trader Tardigrade noted that prolonged consolidation has allowed momentum to cool, a condition that has historically preceded expansion phases for SOL across previous market cycles on the weekly timeframe.

Source: Trader Tardigrade X Post

With the downward pressures abating, some analysts are expecting Solana to go from accumulation to the beginning of a brand-new bullish cycle. Past cycles had a similar form, which resulted in rallies lasting multiple months.

A long-term price target of $1,000 has been mentioned, but this is far from being a near-term target, which is purely speculative in nature.

Also Read: Solana Treasury Grows as Forward Industries Buys During 40% Pullback

Technical Outlook Points to Initial Recovery Stage

According to TradingView data as of Sunday, February 8, SOL is still in a larger downtrend. It is currently trading around $88, which is lower than the 20, 50, 100, and 200 exponential moving averages. 

All of the EMAs are still in a downtrend. The recent drop to the $70s earlier in the month was a capitulation event, but the recent bounce has failed to break through the 20 EMA. Sellers remain in control of the trend.

Source: TradingView

The momentum indicators are also pointing towards an improvement in the market. The Relative Strength Index has improved and is currently near 46, with its moving average near 41. 

However, if it manages to sustainably move past the 50-level, it could bode well for the bulls, while a failure to sustain recent higher lows could see SOL fall further.

Tokenized Real-World Assets on Solana Cross $1 Billion

On the fundamental side, the tokenized real-world asset (RWA) ecosystem of Solana surpassed $1 billion in total on-chain value as of Saturday, February 7, according to information revealed by crypto analyst curb.sol.

This figure reflects a nearly 10x increase in the tokenized U.S. Treasuries, private credit products, and yield-bearing asset markets.

Source: curb.sol X Post

This rapid growth also underlines the importance of Solana as a network for the tokenization of RWAs. As investors increasingly demand transparency in yields, the concept of RWAs is gaining importance in the crypto world. 

As integrations improve, Solana is looking to lead the charge in blockchain-based capital markets in the digital world.

Also Read: Solana (SOL) On-Chain Activity Hits All-Time High: Is a Rally to $110 Next?