Solana has recently witnessed a remarkable milestone as its market capitalization surged past $100 billion, positioning the cryptocurrency’s native token, SOL, for a potential all-time high (ATH) rally. Solana has now established itself as the fourth-largest cryptocurrency by market cap, joining the elite group comprising Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
Currently, SOL is trading at $216.43, marking an impressive weekly gain of 32.6%. By comparison, Bitcoin and Ethereum have gained 19.6% and 29.7%, respectively, over the same period. The cryptocurrency market has been buzzing with anticipation since Solana’s current ATH of $259.96 was recorded in November 2021, during the peak of the crypto bull market fueled by monetary easing measures aimed at tackling the coronavirus pandemic.
The upward momentum for Solana came to a drastic halt during the height of the FTX crisis, which saw its price plummeting to a low of $8.68 in November 2022. Since hitting this nadir, SOL’s current market price reflects an astounding nearly 40x increase, representing a substantial recovery over the past year. Analysts maintain that despite the significant recovery, SOL still holds potential for further appreciation, possibly setting a new ATH during its current price surge.
Julien Bittel, Head of Macro Research at Global Macro Investor, has provided insights into SOL’s recent price movements. He noted that the SOL/BTC trading pair has broken out of an 8-month sideways consolidation phase and may be poised to enter the “banana zone” in Q4 2024—a term in trading that signifies a period of explosive, parabolic price increases, leading to exceptional gains in a short timeframe.
This breakout positions SOL for the formation of either an inverse head-and-shoulders pattern on the daily chart or a cup-and-handle pattern on the weekly chart, both of which are highly bullish indicators for the altcoin. Another notable crypto trader, Bob Loukas, has also shared his optimistic outlook, suggesting that SOL could reach a new ATH within the next 14 days. Loukas further speculated that SOL could experience abnormal gains in 2025, hinting at a potentially thrilling trajectory for the token.
The overall market sentiment for SOL remains bullish, particularly as Bitcoin continues to surpass its own ATHs, reaching over $80,000. This bullish momentum further influences the broader cryptocurrency market, with SOL drawing significant interest from analysts who believe it may one day “flip” Ethereum’s market cap and emerge as the leading smart contract platform.
Additionally, Solana’s decentralized finance (DeFi) ecosystem has shown remarkable growth. The total value locked (TVL) in Solana’s DeFi ecosystem rose to $5.7 billion during Q3 2024, marking a 26% quarter-over-quarter increase, reflecting growing confidence and investment in the platform.
While there is overall optimism, some analysts remain cautious, warning that SOL might face a sharp correction before continuing its upward trend. Meanwhile, Bitcoin is currently trading at $82,251, up 3.5% in the past 24 hours, further highlighting the vibrant, albeit volatile, nature of the cryptocurrency markets.
