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Cryptocurrencies: 12,866
Markets: 940
Marketcap: $ 2.05 T(0.79%)
24h Vol: $ 87.19 B
BTC Dominance: 48.87%

Will Solana Reach $100 and Beyond in Early 2024?

Key Takeaways

Solana’s native cryptocurrency, SOL, surpassed the $100 mark indicating a bullish sentiment. However, SOL has experienced volatility since peaking above $125 in December:

  • SOL found support around $85 twice since January, showcasing strong buying interest.
  • Traders have been profit-taking after SOL’s 475% rally from September lows of $17.
  • On-chain activity on Solana has decreased from its peak, prompting more selling.
  • A potential descending triangle formation signals a bearish breakout could drive SOL to $65.

What Led to the Recent Price Gains?

Several factors contributed to SOL’s rally since September:

  • A broader Bitcoin ETF-fueled market rally benefited SOL.
  • Renewed interest in Ethereum alternatives like Solana grew.
  • Meme coins like Bonk (BONK) surged, driving speculative activity on Solana.

Where is Solana Headed in the Short Term?

Technically, SOL faces near-term downside risks:

  • If SOL breaks below $85, it could retest $65 support.
  • A potential SEC Bitcoin ETF approval could boost risk appetite and benefir SOL.

On the upside:

  • A bullish breakout could see SOL retest $140 highs from April 2022.

Solana’s Long Term Potential

For SOL to reach $1,000, its market cap would need to exceed $400 billion, which seems unlikely in the next 12 months. However:

  • If crypto markets rise and major coins set new highs, SOL could retest $260 highs.
  • Solana’s fast speeds, low fees and expanding ecosystem position it as an Ethereum competitor.
  • Meme coin Sponge V2 ($SPONGEV2) offering 40% APY staking could benefit SOL.

SOL sits around 60% below its 2021 record high, giving it significant upside potential if market conditions improve.

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