Altcoins
Solana Price Jumps 135% in the YTD Outperforming Bitcoin
Solana price has been on an upside correction for the past few days, jumping more than 4% in the past week. At the time of writing, the altcoin was trading 3.40% higher at $23.10. Solana’s market cap has jumped 4.15% to $9 billion over the last day, while the total volume of SOL traded dipped 36%. Solana currently ranks as the 10th most valued cryptocurrency after Polygon and ahead of Polkadot.
SOL is Outperforming
Solana price has been moving higher for the past few days despite the minor pullback in the crypto market on Friday that saw crypto heavyweights Bitcoin and Ethereum slip. Most altcoins tend to move in tandem with the assets’ performance. However, Solana was in the green on Friday, building on Thursday’s gains.
The SOL token has more than doubled this year, outperforming Bitcoin and Ethereum, as the Solana Blockchain tries to move past its association with Sam Bankman-Fried’s FTX platform. Solana price has jumped 132.50% in the year to date, surpassing Bitcoin’s 76% as well as gains in major altcoins.
The collapse of FTX which was among the biggest crypto exchanges, saw the SOL token lose more than 90% of its value. The altcoin has been suffering from the FTX overhung and has only started regaining interest in January following the launch of BONK on the network. The SOL price has erased most of its losses from the collapse of FTX, jumping 170% from its lowest point in December.
According to research firm Messari, Solana’s recovery has been helped by its NFT ecosystem growth and a record where developers raised more than $600 million in seed funding over the past two years. Notably, the recent banking fiasco, as well as recession fears, have pumped liquidity in the crypto market, pushing crypto prices higher.
Even so, investors are questioning Solana’s long-term prospects. Despite the recent surge in SOL’s price to the current $23 per token, the altcoin is yet to reach $260, achieved in 2021 amid the covid-19 pandemic era.
Solana Price Prediction
Solana price has been on an uptrend since the start of the year, wiping nearly 50% of its losses from the FTX fall. On the daily chart, the SOL price has moved above the 50-day and 100-day exponential moving averages (EMAs), as well as the 50-day and 100-day moving averages. Its Relative Strength Index (RSI) has ticked higher into the neutral zone.
I expect the Solana price to continue its uptrend as long as it continues moving above the trendline highlighted in yellow. The next resistance target for the Solana price will be $26. On the flip side, a flip below the trendline could pull SOL lower to find support at $18.90 invalidating the bullish thesis.
SOL Price Chart
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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