Solana Market Cap Exceeds $100 Billion, Setting SOL Up for Potential ATH Rally

Solana (SOL) not too long ago noticed its market cap rise above $100 billion, paving the way in which for a possible all-time excessive (ATH) rally for its native SOL token.

Solana Reclaims $100 Billion Market Cap, Is SOL ATH Imminent?

Solana, at present the cryptocurrency with the fourth largest market cap, not too long ago joined the ranks of Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) by crossing the $100 billion mark in market valuation.

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On the time of writing, Solana’s native token SOL is buying and selling at $216.43, marking a formidable weekly achieve of 32.6%. By comparability, Bitcoin has gained 19.6% and Ethereum 29.7% over the identical interval.

As a reminder, SOL’s present ATH of $259.96 was recorded in November 2021, on the top of the crypto bull market, supported by financial easing as a measure to deal with the coronavirus pandemic.

Nevertheless, this upward momentum modified sharply for SOL on the top of the FTX disaster, with the worth plummeting to a low of $8.68 in November 2022. Thus, SOL’s present market value displays a rise of just about 40x from these lows.

Regardless of this substantial restoration, analysts consider there’s nonetheless extra room for a restoration in SOL, which may probably set off a brand new ATH within the present value rally.

Commenting on SOL’s latest value motion, Julien Bittel, Head of Macro Analysis at World Macro Investor, shared his evaluation and mentioned that the SOL/BTC buying and selling pair has damaged out of an 8-month sideways consolidation channel and could also be heading for the “ banana pair”. zone” within the fourth quarter of 2024.

For the uninitiated, the ‘banana zone’ in buying and selling parlance refers to a part the place the underlying asset can witness an explosive, parabolic value rise, which might result in extraordinary income in a brief time period.

This breakout has positioned SOL for an inverse head-and-shoulders sample on the each day chart or a cup-and-handle sample on the weekly chart, each extremely bullish patterns for the altcoin.

One other crypto dealer, Bob Loukas, shared his views on Loukas hinted that SOL may go “silly” in 2025, pointing to the potential for short-term irregular good points.

General sentiment bullish on SOL

As BTC continues to create new ATHs above $80,000, the broader crypto market seems to be following the main asset’s value momentum.

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Among the many main altcoins, SOL has attracted the curiosity of a number of crypto analysts resulting from its potential to ‘flip round’ Ethereum’s market cap and develop into the main sensible contract platform.

In associated information: Solana’s whole value-locked (TVL) decentralized finance (DeFi) ecosystem rose to $5.7 billion in Q3 2024, representing 26% quarter-on-quarter (QoQ) development.

Some analysts are cautious of SOL’s present value motion. suggestive that the token could possibly be headed for a pointy correction earlier than additional upward motion takes place. BTC is buying and selling at $82,251 on the time of writing, up 3.5% within the final 24 hours.

Featured picture from Unsplash, charts from X.com and TradingView.com