Solana has gained by 13% in the last 24 hours, making it one of the best performers among the top 10 large-cap cryptocurrencies. As of 10:34 GMT+3, Solana was trading at $124.02. Trading volumes were on the rise, too, up by 217% to hit $6.811 billion.
Solana’s rally comes when the broader cryptocurrency market is gaining upside momentum. Only Bitcoin and a few other cryptos were gaining for the last few days. Now that Bitcoin has crossed $63k, firmly holding above the $60k mark, investors have started pouring money into altcoins like Solana.
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Money Is Flowing Into Solana Meme Coins
However, Solana’s rally is not purely based on Bitcoin’s price action, which is evident in the fact that it is outperforming the likes of Ethereum at the moment. It has more to do with the reawakening of the Solana ecosystem, which has been dormant for weeks. One aspect of the Solana ecosystem that has reawakened is meme coins.
Money is starting to flow into Solana meme coins because the low gas fees on Solana make such meme coins more accessible to retail money. One of the Solana meme coins currently leading the way is BONK. As the market gains momentum, and BONK and other Solana meme coins gain momentum, Solana could enter a parabolic price rally driven by activity.
Solana DeFi Deepening
However, it is not just Solana meme coins that are likely to keep propelling SOL higher. The Solana DeFi ecosystem is also awakening with new coins coming up. This is likely to gain significant adoption because investors expect the broader market to keep going higher.
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A lot of airdrops are also happening in the Solana ecosystem, especially by new projects that will likely keep the momentum going in the Solana ecosystem as the crypto bull run gains momentum.
Solana’s rising momentum has much to do with bullish momentum across the crypto market and the reawakening of tokens in the Solana ecosystem.
Solana Breaks Out Of A Multi-Week Range, A Strong Bullish Signal
Solana is in a breakout from a multi-week range between $89.46 and $112.89, and buying volumes are on the rise.
Solana price was rangebound between $89.46 and $112.89 between December 2023 and yesterday. Today, bulls have taken control and pushed Solana through the $112.89 resistance with high volumes. If bulls can sustain this momentum, then Solana could be on course to retest its all-time highs of $258 in the coming days.
However, if buying volumes drop, then two scenarios could play out. The first would be another consolidation above $112.89, now a key support level. This could be followed by another leg up as bulls control the market.
The other scenario would be the short sellers taking control and pushing Solana through the $112.89 support. In such a case, the next key level to watch would be $89.46, a key support level for Solana. If broken, then Solana could drop to prices below $50.
Solana Price Prediction – All-Time Highs Within Reach
While there is always a chance that Solana could consolidate again or turn bearish, the odds are bulls are taking Solana back to its all-time highs in the short term. This is quite evident because the breakout with high volumes is on the weekly charts, which usually have more data factored in. If the weekly chart is anything to go by, this breakout marks the beginning of a new bull run for Solana, one that could see it retest its all-time highs and make new ones as the entire crypto market goes parabolic.
Besides the technicals, Solana is boosted by a couple of fundamentals. The most important among them is that Solana transaction fees are among the lowest among top L1s. This makes Solana one of the best for developers looking to launch tokens to take advantage of the bull market. Retail money, especially the small money investors, are also likely to be drawn to Solana by the low fees. The result is that the activity level on the Solana could hit levels never seen before.
Since this increasing activity level means an increase in demand for Solana, the case for SOL retesting its all-time highs in the coming days is high.
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