How Bitcoin can help Solana rise to a new ATH

As a researcher with a background in cryptocurrency analysis, I find it intriguing that Solana’s (SOL) price correlation with Bitcoin (BTC) is quite strong. According to recent data, the correlation coefficient between the two is 0.75. This suggests that when BTC moves, SOL tends to follow suit.

According to Daniel Cheung, the co-founder of Syncracy Capital, the price of Solana’s SOL token might reach a new record high (ATH) based on his recent post on X, formerly known as Twitter.

Based on his perspective, Bitcoin’s [BTC] shift back into bullish market conditions may be driving Solana’s [SOL] potential price increase. He elaborated on this viewpoint by mentioning that:

As a researcher observing the market trends, I expect the dispersal of returns to persist. However, I predict that we will witness several new and older altcoins reaching all-time highs (ATHs) once again. For instance, tokens such as Solana ($SOL), Aavegotchi ($AKT), Maker ($MKR), and The Graph ($TAO) are strong contenders for this trend.

As of now, Bitcoin’s value stood at $67,164, marking a 10.17% rise over the previous week. In contrast, Solana’s price was $173.35, signifying a 19.76% growth during the same time frame.

As a cryptocurrency analyst, I’ve observed some intriguing market trends. In March, Bitcoin (BTC) set a new all-time high (ATH) prior to its halving event. However, before BTC reached this milestone, Solana (SOL) had been outperforming it. Surprisingly, despite SOL’s strong performance against Bitcoin, it didn’t manage to establish a new ATH during that period.

The price of Solana’s token reached an all-time peak of $260.06 during the 2021 bull market. However, despite surpassing the $200 mark during this cycle, the token was unable to achieve its previous record-high value due to bearish influences.

Solana joins forces with the king

Should the price of SOL reach a new peak with Bitcoin’s support, their strong correlation would be evident based on data analyzed by AMBCrypto using information sourced from Macroaxis.

At present, the relationship between Solana and Bitcoin, as indicated by their correlation coefficient, is 0.75. This figure represents the degree of association between the two assets, with values falling within the range of -1 to +1.

If the reading is near the negative zone, it indicates that the price isn’t advancing in the same vector.

From my perspective as an analyst, a reading that is very close to a +1 score implies a robust correlation between the two assets. In other words, Solana and Bitcoin tend to move in similar directions more often than not.

How Bitcoin can help Solana rise to a new ATH

Red days ahead still

As we approach the new week, some analysts anticipate Bitcoin (BTC) reaching a price of $70,000. Should this occur, Solana (SOL) could potentially see its price surpassing $200 as well.

To reach a new all-time high (ATH), the Solana (SOL) price must rise by over 55%. According to AMBCrypto’s analysis, sentiment towards both cryptocurrencies is generally negative as per their Weighted Sentiment assessment.

According to data from Santiment, Bitcoin’s Weighted Sentiment was -1.333.

The skepticism in the wider market towards Solana’s (SOL) price growth relative to Bitcoin’s (BTC) resulted in a figure of -0.745 for Solana.

Should the opinion stay unfavorable, the desire for SOL and Bitcoin may decrease. On the other hand, if there’s a shift in sentiment, it could justify a hike in their prices.

How Bitcoin can help Solana rise to a new ATH

Realistic or not, here’s SOL’s market cap in BTC terms

But from the look of things, Bitcoin might need to surpass $73,750 for Solana to rise past $260.

As an analyst, I believe that SOL‘s price may exceed its past peak within the upcoming quarter, even though it may not occur within a few weeks.

2024-05-19 19:04

Solana joins forces with the king

Red days ahead still

Read More