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Solana (SOL) recently saw its market cap surpass $100 billion, setting the stage for a potential all-time high (ATH) rally for its native SOL token.
Solana Regains $100 Billion Market Cap, Is SOL ATH Imminent?
Solana, currently the cryptocurrency with the fourth-largest market capitalization, recently joined the ranks of Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) by surpassing the $100 billion mark in market valuation.
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At the time of writing, Solana’s native SOL token is trading at $216.43, marking an impressive weekly gains of 32.6%. In comparison, Bitcoin gained 19.6% and Ethereum 29.7% during the same period.
Recall that SOL’s current ATH of $259.96 was recorded in November 2021, at the peak of the cryptocurrency bull market, driven by monetary easing as a measure to address the coronavirus pandemic.
However, this bullish momentum changed drastically for SOL at the height of the FTX crisis, and its price plummeted to a low of $8.68 in November 2022. Therefore, SOL’s current market price reflects an increase of almost 40 times from these lows.
Despite this substantial recovery, analysts believe there is still more room for SOL to recover, potentially setting a new ATH on its current price rise.
Commenting on SOL’s recent price action, Julien Bittel, Head of Macro Research at Global Macro Investor, shared his analysis and said that the SOL/BTC trading pair has broken out of an 8-month sideways consolidation channel, potentially moving towards the “banana”. zone” in the fourth quarter of 2024.
For the uninitiated, the “banana zone” in trading terms refers to a phase where the underlying asset may witness an explosive and parabolic price appreciation, leading to windfall gains in a short period.
This breakout has positioned SOL for an inverse head and shoulders pattern on the daily chart or a cup and handle pattern on the weekly chart, both incredibly bullish patterns for the altcoin.
Another cryptocurrency trader, Bob Loukas, shared his perspective on X and stated that he wouldn’t be surprised to see SOL reach a new ATH “within 14 days.” Loukas hinted that SOL could “go silly” in 2025, suggesting the possibility of abnormal gains soon.
Overall Bullish Sentiment on SOL
As BTC continues to set new ATHs above $80,000, the broader crypto market appears to follow the price momentum of the leading asset.
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Among the major altcoins, SOL has sparked the interest of several crypto analysts due to its potential to “flip” Ethereum’s market capitalization and become the leading smart contract platform.
In related news, the total value locked (TVL) of the Solana decentralized finance (DeFi) ecosystem pink to $5.7 billion during the third quarter of 2024, meaning quarter-on-quarter (QoQ) growth of 26%.
Some analysts are wary of SOL’s current price action, suggestion that the token could be headed for a sharp correction before a further bullish move. BTC is trading at $82,251 at press time, up 3.5% in the last 24 hours.
Featured image from Unsplash, charts from X.com and TradingView.com
