Solana (SOL) has been on an unstoppable rally recently, smashing through critical resistance levels dramatically. It has even managed to surpass Ethereum in daily trading volume, which is a remarkable achievement.
Solana, viewed as one of Ethereum’s biggest competitors in the layer 1 blockchain space, has seen its native SOL token surge in value by over 7% to reach $120. This extends Solana’s extremely impressive weekly gains to around 60%, while SOL’s December gains now amount to a staggering 100% or more.
In the wake of this meteoric price run, investors had been anticipating a pullback or dip to present an opportunity to accumulate more SOL at a relative discount. However, according to prominent technical analysis and trade suggestions shared widely on TradingView, it appears there may still be potential for further upward momentum in the short term before any significant correction. While it may seem challenging to recommend building a large SOL position after such dramatic gains, the analysis indicates there is likely additional upside potential still to come for Solana in the near term.
SOL managed to blast through the crucial psychological and technical resistance level at $113 with little struggle, showcasing the incredible bullish strength behind the recent rally. The sheer speed of the price surge has caused some traders to begin taking profits off the table, which is likely a prudent move given the sizable increase observed. However, Solana seems to have strong momentum on its side still.
Looking ahead to 2024 projections, the $143 level stands out as the next major resistance zone for SOL to test. Traders should expect some selling pressure and potential consolidation around key overhead resistance areas. If a pullback does materialize, the $100 level could provide an attractive area for investors to gain Solana exposure at a relative discount.
The year 2024 is looking increasingly promising for the broader cryptocurrency market, with the anticipated arrival and approval of a Bitcoin ETF, which could unlock a new influx of institutional capital into the space. Under this optimistic scenario, a realistic Solana price target for the end of 2024 could be in the vicinity of $250 based on current momentum.
In a remarkable show of strength, Solana has now surpassed Ethereum as the top blockchain project in terms of 24-hour perpetual futures contract trading volume across exchanges. Solana commanded an impressive $5.56 billion in 24-hour volume, while Ethereum futures saw $4.68 billion in volume by comparison. This shift in market leadership comes alongside Solana’s 24-hour price gain of 7.51%. Perpetual futures contracts allow traders to speculatively bet on future cryptocurrency price movements without an expiry date and are crucial to providing deep liquidity and price discovery to crypto markets. The fact that Solana has overtaken Ethereum in this important metric signals a notable shift that could have lasting implications.
Additionally, in spot exchange trading volume, Solana continues to dominate with a commanding lead capturing an 8.43% market share, versus Ethereum’s 4.62% share of spot volume. Solana now boasts an overall market capitalization exceeding $50 billion, cementing its status as a highly prominent player within the cryptosphere. In yet another impressive display of strength, Solana has even surpassed Ethereum in terms of 24-hour decentralized exchange (DEX) trading volume, highlighting Solana’s rapid adoption and usage growth.
