Solana saw a 52.63% YTD increase but has remained stagnant at around $167.12 recently.
A strong correlation between Bitcoin (BTC) and low social dominance suggests potential for price movement.
Open Interest for SOL has dropped to $807.25 million, but a rise past $2 billion could double its price to $334.
Indicators hint at Solana (SOL) potentially climbing to $334 initially. Throughout the past week, SOL’s price has been relatively static, hovering around $167.12. Despite this recent stagnation, the cryptocurrency has enjoyed a 52.63% increase Year-To-Date (YTD), though this is a far cry from its stellar performance in 2023.
Solana’s supporters remain bullish, with many forecasting that SOL could hit $500 by the end of this market cycle. Although there were expectations for SOL to exceed its previous high of $260 by the end of the first quarter of 2024, the closest it reached was $210 in March.
An on-chain analysis has highlighted a strong correlation between SOL and Bitcoin (BTC), with a coefficient of 0.83, indicating that their prices frequently move in tandem. In contrast, SOL’s correlation with Ethereum (ETH) stands at only 0.10, suggesting that their price movements are more independent. For SOL to reach its higher price targets, BTC would likely need to achieve new highs.
Social dominance is another key metric. Solana’s social dominance, currently at 4.938%, is below its March levels, indicating a reduced level of discussion about SOL compared to other leading cryptocurrencies. Historically, low social dominance has often been a good buying opportunity, as it suggests the token is not currently in high demand.
The Open Interest (OI) for SOL, which measures the amount of money in related contracts, has fallen to $807.25 million, indicating a reduction in market liquidity. However, if OI were to exceed $2 billion again, SOL’s price could potentially double, reaching around $334.
Read also:
Floki Boasts 20M+ Social Dominance in Metaverse and Gaming!
Will ADA Continue to Rally Due to Positive Sentiment?
Bitcoin Dominance: Unveiling the Future of the Crypto Market
Riding the Bull: SOL, GRT, AR & FTM—Cryptos Set to Soar in the Near Future
Solana (SOL) Price Analysis July Week 3 to 4
The post Indicators Point to Solana Hitting $334 Soon Amid Positive Trends appeared first on Crypto News Land.
