Altcoins
Solana Price Skyrockets to 20-Month Peak Amidst Memecoin Frenzy
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 show that the Total Value Locked (TVL) on Solana applications grew significantly over the past week. The platform’s TVL rose to $1.3 billion worth of tokens, its highest level since July 2022 and up from the $400 million recorded in November.
These factors, coupled with the global crypto market sentiment, have boosted the Solana price, extending its year-to-date gains to more than 832%, with most growth recorded in the past two months alone.
Solana Price Outlook
The daily chart shows that the Solana price has been on a strong upward trajectory for the past few weeks, breaking above the bullish ascending channel shown in yellow. The altcoin hit an intraday high of $99.49 on Friday before retreating. Solana remains above the 50-day and 200-day exponential moving averages and the 100-day and 200-day simple moving averages. Its Relative Strength Index has moved higher to the overbought territory, highlighting an increase in buying pressure.
Solana price needs to break above the critical level of $100 for further future gains. A breach above this level might pave the way for a jump to the next resistance at $120. However, we cannot rule out a drop below the immediate support at $80.55, which will invalidate 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 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,…
Cardano price has been on a bullish trajectory in recent weeks, jumping to its highest level since July and breaking above the crucial level of $0.3000. At the time of writing, ADA’s price was changing hands at $0.3200. Notably, the altcoin has printed a 9.82% increase over the past week and climbed by more than 20% in the month to date. The asset’s total market cap has increased by nearly 2% to $11 billion in the past day, ranking it 8th after Solana.
ADA’s Rally
Cardano price has recorded significant gains over the past few weeks on the back of remarkable on-chain data and broader market bullish cues. Cardano, Ethereum’s competitor, has also been part of the current cryptocurrency market rally, wiping some of the losses made over the past few months.
The cryptocurrency market has been in the green over the past few weeks amid the spot bitcoin EFT buzz and Bitcoin’s brief interaction with the key resistance level of $35,000. During this period, the global crypto market cap has surged to $1.29 trillion. The Crypto Fear and Greed Index, which measures the key emotions driving the market, has increased to a greed level of 72, indicating an increase in risk appetite by investors.
Cardano’s rally has also been credited to an increase in user activity on its platform. Santiment, a blockchain intelligence firm, highlighted in an X post on Thursday that address…
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