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Solana (SOL) recently saw its market cap rise past $100 billion, setting the stage for a potential all-time high (ATH) for its SOL token.
Solana Again Seeks 100 Billion Market Cap, Is SOL ATH Close?
Solana, currently the fourth largest cryptocurrency by market cap, recently joined Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) in passing the $100 billion mark in market capitalization.
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At the time of writing, Solana’s native SOL token is trading at $216.43, marking an impressive weekly gain of 32.6%. In comparison, Bitcoin gained 19.6% and Ethereum 29.7% during the same period.
To recall, SOL’s current ATH of $259.96 was recorded in November 2021, at the peak of the crypto bull market, encouraged by monetary easing as a measure to combat the coronavirus pandemic.
However, this increase in momentum changed dramatically for SOL at the height of the FTX crisis, with its price falling to a low of $8.68 in November 2022. So the market price of SOL shows an increase of about 40x since this decline.
Despite this major recovery, analysts believe there is still room for SOL to rally, potentially setting a new ATH on its current price rise.
Commenting on the recent SOL price action, Julien Bittel, Head of Macro Research at Global Macro Investor, shared his analysis, saying that the SOL/BTC trade has broken out of an 8-month consolidation channel, which may go “bananas. location” in Q4 2024.
For those who don’t know, a “banana zone” in trading terms refers to a phase where the underlying asset may witness a price explosion, like a parabolic one, leading to extraordinary gains in a short period of time.
This breakout set up a SOL inverse head and shoulders pattern on the daily chart or a cup and handle pattern on the weekly chart, both incredibly bullish patterns for altcoins.
Another crypto trader, Bob Loukas, shared his opinion on X, saying he wouldn’t be surprised to see SOL reach a new ATH “within 14 days.” Loukas pointed out that SOL could be “stupid” by 2025, raising the possibility of extraordinary gains soon.
Overall Sentiment Bullish On SOL
As BTC continues to establish new ATHs above $80,000, the broader crypto market appears to be following the leading asset’s price momentum.
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Among the major altcoins, SOL has sparked the interest of several crypto analysts because of it possible to “revolutionize” Ethereum’s market cap and become the leading smart contract platform.
In related news, Solana’s decentralized finance (DeFi) ecosystem’s total-value-locked (TVL) rose to $5.7 billion during Q3 2024, representing 26% quarter-over-quarter (QoQ) growth.
Some analysts note the current price action of SOL, he raised so that the mark is directed to a sharp correction before the upward movement. 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
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