- Solana’s short-term risk reached a low that it reversed during the last 4 corrections.
- SOL’s DEX trading volume exceeded $100 billion for the second month in a row.
Solana’s (SOL) price action chart juxtaposed with its Short-Term Risk Index where it has bounced from a constant level during recent bull runs. This trend suggests a potential floor in risk aversion among traders. Historically, whenever the Risk Index reached this low, a price recovery ensued on the charts.
In fact, this consistent behavior indicates that SOL’s current position could precede another upward move.
Source: DIGITAL Polarity
These historical models, together, have assessed potential entry points and suggest that Solana could soon experience a price rally if the trend continues.
This analysis, anchored in past historical trends, supported a cautiously optimistic outlook for SOL’s near-term performance – potentially strengthening its position in the market.
Solana apes Bitcoin model in early 2024
Solana also mimicked Bitcoin’s trajectory in early 2024, which saw BTC reach new all-time highs. During this period, Bitcoin rose from $47,080 to $74,000, driven by strong buy-ins at critical support levels around $45,000.
Likewise, Solana exhibited a similar trend, bouncing off a crucial support level near $193.84, marked by the intersection of historical resistance turned into support.
This replication suggests that SOL could continue an exponential rise similar to that of Bitcoin, with key resistance potentially breaking to fuel further gains.
Source: Commercial View
This indicates that if Solana continues to follow this path, it could target the next resistance level near $248.44, coinciding with a key Fibonacci retracement zone. If momentum mirrors Bitcoin’s, breaking above this level could push SOL towards $328.98 and beyond – Replicating Bitcoin’s rise.
Simply put, this analysis hinted at a predictive outlook, in which SOL could reach new highs – reflecting Bitcoin’s historical performance over a comparable period.
DEX volume surge amid altcoin season
Additionally, Solana’s dominance in DEX volume has been evident as of late, surpassing $100 billion for yet another month. She also continued to run other channels. Ethereum followed with a trading volume of $77.201 billion – a sign of a competitive but inferior performance.
Other platforms like Base and Binance Smart Chain (BSC) reported volumes of $44.51 billion and $41.739 billion, respectively, further highlighting Solana’s lead in the market.
Source: Etage Solana
Smaller chains like Arbitrum, Sui, and Avalanche contributed $30.432 billion, $9.24 billion, and $7.332 billion, respectively. These results were a sign of their growing, but still modest, share in the DEX market.
Finally, the expected altcoin rally projected an upward trend in total market capitalization, specifically highlighting an altcoin season.
This trend suggests that SOL, although already exhibiting bullish trends, could benefit significantly as market conditions favor altcoins.
Source: Commercial View
With a market cap exceeding $3.36 trillion, the environment currently appears ripe for a Solana rally. Especially in the first quarter of 2025. This could potentially drive SOL to new highs, paralleling or even surpassing its previous highs.
It is crucial to monitor Solana closely, as it could mirror or capitalize on the altcoin’s broader rise, thereby improving its valuation and market position.
