With a breakout event to take off Solana from the 2021 peak as a launchpad, bulls target the $600 milestone in 2025.
Solana SOL $222.8 24h volatility: 1.0% Market cap: $106.60 B Vol. 24h: $4.35 B is emerging as a rising name in the crypto race to become the #1 altcoin. Its rapid growth and increasing adoption make it a strong contender in the altcoin space.
With a market valuation of over $100 billion, Solana’s value is still less than one-fourth of Ethereum’s ETH $3 891 24h volatility: 1.9% Market cap: $468.44 B Vol. 24h: $31.52 B market cap, reflecting its potential room for growth. However, Solana has demonstrated a massive bullish recovery in the current cycle compared to Ethereum’s more conservative run.
With notable resilience and appeal to investors, Solana shows a strong bullish trend. Furthermore, Solana is trading closer to its all-time high than Ethereum, reflecting its relative strength and momentum in the market.
On the weekly chart, the Solana (SOL) price trend highlights a cup-and-handle pattern formation, a strong bullish indicator in technical analysis. The neckline of this bullish pattern coincides with the psychological resistance mark of $250.
Based on the Fibonacci levels, the 100% retracement level at $249.81 aligns perfectly with the neckline, further strengthening its significance.
Photo: TradingView
This confluence of multiple resistances at a single point makes $250 a pivotal level for SOL token. A bullish closing above this mark would likely flash a buy signal for price action traders, paving the way for a high-momentum rally.
Currently, the SOL price trend is experiencing a minor pullback, characterized by lower price ejections at the weekly candles. These lower price ejections indicate robust demand at lower levels, reinforcing the likelihood of a price surge as the broader market recovers.
With the cup-and-handle pattern in play, the SOL bull run is projected to reach $600 by early 2025. In an optimistic case, by the end of the bull cycle, the 1.618 Fibonacci level near $1,827 could serve as a potential target, presenting a highly bullish scenario.
Supporting this trend, the MACD and signal line maintain a positive outlook. Further, the surge in bullish histograms confirms the overall uptrend.
Adding to this bullish sentiment, the total value locked (TVL) over the Solana blockchain has reached an impressive $9.215 billion. This marks a new all-time high for Solana, reflecting growing traction. Further, it currently dominates 6.74% of TVL across all blockchains.
However, compared to Ethereum’s $77.773 billion TVL, which accounts for 56.85% of the total, Solana still has a long journey ahead to claim the top spot.
Solana has achieved a remarkable milestone in recent developments by surpassing Ethereum in a significant battle for developer attention. For the first time, Solana has overcome Ethereum’s eight-year-long dominance as the top choice for new developers.
According to the recent Electric Capital report, 7,625 developers joined Solana’s ecosystem in 2024, compared to Ethereum’s 6,456. This achievement solidifies Solana’s position as the #1 ecosystem for new developers this year.
With its rapidly growing ecosystem, increasing developer activity, and robust technical setup, Solana is well-positioned to live up to its moniker of “Ethereum killer”. As the current rally unfolds, Solana’s ability to maintain this momentum will determine its trajectory toward becoming a dominant player in the cryptocurrency space.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
