Why Solana’s ATH depends on Bitcoin’s breakout to $93K

Solana has regained dominance over its rivals, setting SOL up for short-term gains.
However, reaching a new ATH might require a bit more time.

As a seasoned analyst with over a decade of experience navigating the ever-evolving cryptocurrency landscape, I find myself intrigued by the current state of Solana [SOL]. While it has certainly regained some momentum, setting SOL up for short-term gains, reaching a new All-Time High (ATH) might require a bit more patience.

Despite bucking conventional market expectations, the optimism for Bitcoin [BTC] reaching $100K during a single bull run appears to be fading. Even with President Trump’s endorsement, there’s an increasing sense of caution in the marketplace.

Yet, the lack of a pullback suggests the bears aren’t winning just yet.

In this climate, altcoins have been given an opportunity to thrive, surpassing traditional barriers and showing growth rates that are twice as fast as Bitcoin’s.

Instead of Solana [SOL] being the star performer in the last cycle, it’s been overshadowed recently as Cardano [ADA] has achieved new peaks in performance.

As Bitcoin struggles to break resistance at $93K, altcoins seem poised for short-term gains.

Regarding a parabolic surge, it’s crucial for Bitcoin to overcome the resistance level to rebuild market trust among investors. Simultaneously, Solana encounters obstacles that remain unaddressed, which might obstruct its journey towards a fresh record high.

Two possible paths lie ahead for Solana

Over the past 24 hours, Solana has experienced significant importance. It managed to break away from a five-day holding pattern by surging 9% in a single day, currently trading at approximately $238.

I find myself reminiscing about a time three years back, around the same month, when Solana (SOL) touched its all-time high (ATH) of $260, a level not seen since then in this cycle.

At present, this surge occurs as Bitcoin grapples with overcoming resistance at $91K, while in the daily charts, it’s XRP that is grabbing attention.

Although Solana held steady, Ripple experienced a significant surge, soaring by more than 70% and shattering the $1 price mark.

Collectively, these aspects point towards an optimistic perspective for Solana. This optimism stems from the fact that in the last five days, Solana’s stability has been primarily influenced by investors shifting their attention towards Ripple (XRP).

On the other hand, XRP’s 7% decline returning it to its base level suggests that some investors may be selling off, creating a chance for Solana buyers to take advantage of this situation. Previous assessments indicate that they have indeed been taking action in this regard.

Over the past five days, I’ve observed an impressive surge in the creation of new digital wallets on the Solana network. Starting with around 15.6 million wallets, this figure has grown by nearly 30.77%, reaching a total of approximately 20.4 million. This rapid growth suggests a significant influx of users joining the Solana ecosystem.

As someone who has experienced the thrill of FOMO (Fear Of Missing Out) myself, I can confidently say that it plays a significant role in creating excitement and anticipation for upcoming events or trends. In my own life, I’ve seen firsthand how this phenomenon can drive people to act quickly and make decisions based on the fear of missing out rather than careful consideration. This surge in interest reflects the growing desire to be part of something before it becomes mainstream, fueling the buzz and hype that often precedes a breakout. It’s an interesting psychological aspect of human nature, and one that I find fascinating to observe.

Source : SolScan

Based on current trends, it appears that Solana might experience an uptick towards approximately $248 in the near term. But keep in mind, due to the high volatility of the market, this price surge may plateau at this target.

The next step could either involve adjusting the current position before hitting a new all-time high, or it may require waiting for a significant event to occur that will drive the price up.

History suggests SOL may have to wait longer

Although the previously mentioned benchmark might appear rather hopeful considering the positive on-chain information, it’s crucial not to disregard the prevailing market mood.

Currently, the Relative Strength Index (RSI) indicates that Bitcoin is overbought, as 81% of its price movement over the past two weeks has been upward. This suggests that the market may be getting too hot, so now attention turns towards the underlying fundamentals to prevent less experienced investors from selling off.

The fact it’s holding steady under $91,000 indicates that bulls are persistently overcoming bearish resistance according to multiple indicators.

As altcoins ride the wave of this current surge, it’s worth noting that such steep increases are typically fueled by Bitcoin in the past.

In other words, if investors can’t determine when the lowest point for Bitcoin is coming up, it might be challenging for leading altcoins to surpass their psychological resistance points.

Read Solana’s [SOL] Price Prediction 2024–2025

Even though fresh participants are taking a long-term approach towards Solana, reaching beyond $260 may still prove challenging. If bulls aim to replicate the 2021 trend, they must initially surpass Bitcoin’s current resistance level of $93,000 first.

A surge could be initiated if the price dips near $95K again, which might pave the way for Solana to reach a value of approximately $260. This scenario would require investors to maintain their preference for Solana (SOL) compared to other alternative cryptocurrencies.

2024-11-17 16:08

Two possible paths lie ahead for Solana

History suggests SOL may have to wait longer

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