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Solana (SOL) recently saw its market cap soar past $100 billion, paving the way for a potential all-time high (ATH) for its native SOL token.
Solana regains $100 billion market cap, is SOL ATH imminent?
Solana, currently the cryptocurrency with the fourth-largest market cap, 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 token SOL is trading at $216.43, representing an impressive weekly gain of 32.6%. In comparison, Bitcoin rose by 19.6% and Ethereum by 29.7% during the same period.
As a reminder, SOL’s current ATH of $259.96 was recorded in November 2021, at the peak of the cryptocurrency bull market, supported by monetary easing as a measure to address the coronavirus pandemic.
However, this bullish momentum changed sharply for SOL at the height of the FTX crisis, with its price falling to a low of $8.68 in November 2022. SOL’s current market price thus reflects an ~40x upside from these lows.
Despite this significant recovery, analysts believe that there is still more room for the SOL price to rise, which could lead to a new ATH being set in the current price rise.
Commenting on SOL’s recent price action, Julian Bittel, Head of Macro Research at Global Macro Investor, shared his analysis, saying that the SOL/BTC trading pair has broken out of an 8-month sideways consolidation channel, and is likely to move towards ‘banana’. region” in the fourth quarter of 2024.
For the uninitiated, the “banana zone” in trading terminology refers to a phase where the underlying asset may experience a massive price surge, resulting in extraordinary gains in a short period.
This breakout caused SOL to develop 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 incredibly bullish patterns for the altcoin.
Another cryptocurrency trader, Bob Lucas, shared his outlook on X, stating that he would not be surprised to see SOL reach a new ATH “within 14 days.” Lucas hinted that SOL could “get ridiculous” in 2025, suggesting abnormal gains could occur soon.
Overall sentiment is bullish on SOL
As BTC continues to create new ATHs exceeding $80,000, the broader cryptocurrency market appears to be following the price momentum of the leading asset.
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Among the major altcoins, SOL has aroused the interest of many cryptocurrency analysts because of it possible To “flip” the market cap of Ethereum and become the leading smart contract platform.
In related news, Total Value Locked (TVL) ecosystem for Solana’s decentralized finance (DeFi) ecosystem rose To $5.7 billion during the third quarter of 2024, indicating a growth of 26% on a quarterly basis.
Some analysts are concerned about SOL’s current price action, suggestion The symbol may be heading towards a sharp correction before further upward movement. Bitcoin is trading at $82,251 at press time, up 3.5% in the past 24 hours.
Featured image from Unsplash, charts from X.com and TradingView.com