Solana’s price has been rising recently, stealing the spotlight in the cryptocurrency world with an impressive rise.
As of November 12, 2024, SOL is trading at $211, representing a 5% rise over the past 24 hours, according to Brave New Coin’s Solana Price Index. This gain makes Solana the third best performing coin among the ten largest cryptocurrencies by market cap.
Source: Brave New Solana Coin Price Index
The upward momentum began on November 5, ending a 234-day period of consolidation. Donald Trump’s recent election victory also played a role in boosting market sentiment, leading to another 14% increase in Solana’s price to a high of $224. This rally pushed SOL past the $190-$200 resistance level, a stronghold that has held steady for about seven months.
Currently, Solana stands just 15% below its previous all-time high, sparking speculation that it could reach $1,000 by the end of this cycle. Drawing comparisons to the 2021 bull market, when Solana stock rose 900% after 117 days of consolidation, analysts see the potential for history to be repeated. If the trend continues, SOL could approach the $1,900 level.
Solana breaks key levels, indicating strong bullish momentum
The recent rise in Solana prices indicates a strong upward trend. A breakout of the key supply range of $180-$200 indicates clear bullish momentum. Holding more than $200 fuels expectations for continued growth, with daily trading volume jumping 27%, according to Coingecko. This increase in volume indicates that buyers are dominating the market, which could lead to higher prices with minimal pullback.
High trading volume, totaling $15.35 million, confirmed the breakout, indicating its authenticity and reducing the risk of a false move. A massive multi-year bull flag pattern supports the case for sustainable gains. Additional factors, including political shifts under Donald Trump’s administration and Canary Capital’s introduction of the Solana ETF, set the stage for a significant rally.
SOL, Solana’s native asset, rose 35% from November 5 to November 11, hitting $222 – the highest mark since December 2021. This uptrend has sparked talk among traders about reaching an all-time high of $260 . Meanwhile, Bitcoin’s price rally to $84,500, driven by institutional inflows and expected regulatory clarity in the US, has increased optimism about Solana’s outlook.
Solana’s TVL reaches $7.6 billion, surpassing the altcoin market
SOL recently outperformed the broader altcoin market, rising 33% over the six days ending on October 11. Investor optimism towards Solana rose further as smart contract activity expanded, which is reflected in the platform’s total value locked (TVL) reaching $7.59 billion by November 12 – the highest since December 2021, according to DefiLlama. Apps like Jito, Raydium, Drift, and Binance contributed to a 36% increase in deposits, underscoring Solana’s growing utility and adoption.
Source: Devilama
However, critics point to Solana’s reliance on meme currencies such as Dojoyfat (WIF), BONK, and POPCAT, which each exceed $1.5 billion in market cap. Decentralized token launchers, particularly Pump.fun, have seen decentralized trading volumes rise, raising concern about Solana’s reliance on memecoins. Despite these risks, Solana’s rising total value and expanding use of smart contracts indicate strong long-term potential.
Key future levels for Solana include the 0.27 extension at $260 and the 0.618 extension at $330, both of which are potential resistance points on its upward trajectory. Beyond that, the SOL may reach $400, a crucial psychological barrier. In the event of a pullback, the previous resistance area at $180-$200 is expected to provide strong support, allowing for a potential recovery.
