Solana's short-term risk has bottomed out at levels reversed during the past four adjustments.
SOL's DEX trading volume has surpassed $100 billion for the second consecutive month.
The price chart of Solana (SOL) aligns with its short-term risk index, which has rebounded from stable levels during the recent bull market. This pattern suggests that traders' risk aversion sentiment may be at a bottom. Historically, every time the risk index drops to such lows, the price on the chart has subsequently rebounded.
Indeed, this consistent behavior indicates that SOL's current position may foreshadow another upward trend.
These historical patterns collectively assess potential entry points and suggest that if the trend holds, Solana's price may soon rise.
This analysis, based on past historical trends, supports a cautiously optimistic outlook for SOL's short-term performance – with potential for enhancing its market position.
Solana mimics Bitcoin's pattern in early 2024.
Solana also mimicked Bitcoin's trajectory in early 2024, when BTC hit an all-time high. During this period, Bitcoin surged from $47,080 to $74,000, driven by significant buying around the key support level of approximately $45,000.
Similarly, Solana has shown a comparable pattern, rebounding from a key support level near $193.84, which marks the historical resistance turning into support.
This replication suggests that SOL can exhibit similar exponential growth to Bitcoin, with key resistance levels potentially being broken, leading to further increases.
This indicates that if Solana continues to develop along this path, it may aim for the next resistance level around $248.44, aligning with the key Fibonacci retracement area. If the momentum is similar to Bitcoin's, breaking this level could propel SOL to $328.98 or even higher – replicating Bitcoin's surge.
In short, this analysis suggests a predictive outlook that SOL may reach new heights, reflecting Bitcoin's historical performance during the same period.
DEX trading volumes surge during altcoin peak season.
Additionally, Solana's dominance in DEX trading volume has recently been evident, exceeding $100 billion for a consecutive month. It continues to lead over other chains, followed by Ethereum with a trading volume of $77.201 billion – indicating competitiveness, but underperformance.
Other platforms like Base and Binance Smart Chain (BSC) reported trading volumes of $44.51 billion and $41.739 billion, further highlighting Solana's market-leading position.
Smaller blockchains such as Arbitrum, Sui, and Avalanche contributed $30.432 billion, $9.24 billion, and $7.332 billion, respectively. These findings indicate that their market share in the DEX market is growing, but remains relatively small.
Finally, the anticipated altcoin rebound signals an upward trend in total market capitalization, particularly highlighting the altcoin season.
This pattern indicates that while SOL has already shown bullish trends, it may benefit significantly as market conditions favor altcoins.
With a market cap exceeding $3.36 trillion, it seems that Solana is poised for a rebound, especially in the first quarter of 2025. This could propel SOL to new highs, matching or even surpassing previous peaks.
Close monitoring of Solana is crucial as it can reflect or leverage a broader altcoin surge, thereby enhancing its valuation and market position.
