Year-to-date, SOL's price has increased by 110% and surpassed its previous all-time high (ATH). Nevertheless, investors still hope this altcoin will yield more profits in December 2024.
Whether this happens depends on various factors. The following analysis will examine some key factors and analysts' predictions about Solana's (SOL) potential.
Sentiment around SOL is declining, but analysts remain optimistic
SOL's price increase this year has helped maintain social dominance at a relatively good level. This metric reflects the level of discussion about a cryptocurrency compared to other assets in the top 100.
The increasing social dominance rate indicates a higher level of discussion about an asset, while a decline signals the market shifting attention to other coins. According to Santiment, Solana's social dominance rate is currently at 6.09%, reflecting significant interest and positive conversations about this asset.
The increasing metrics may be directly related to changes in SOL's value and the activity of memecoins on Solana's blockchain. If this trend continues, SOL will have an optimistic December.
Social dominance rate of Solana | Source: Santiment
Regarding prospects, lead analyst Brian Quinlivan at Santiment believes that declining sentiment around SOL could significantly impact its performance in December.
Interestingly, Quinlivan considers traders' skepticism a potential positive factor, noting that it could set the stage for recovery. However, he emphasizes that SOL's recovery depends on Bitcoin's price maintaining at least $96,000.
"Traders appear skeptical as this asset peaked last Thursday/Friday. And now, with the pullback below $240, sentiment is at a low point, around 10% compared to data from three months ago. This should be seen as a good sign that it could recover quickly as long as Bitcoin stabilizes and maintains at least in the range of $94,000 to $96,000 throughout this week," Quinlivan said.
Weighted sentiment of Solana | Source: Santiment
If validated, this would also align with Raoul Pal's prediction that SOL could soon reach a new ATH. Besides Pal, analyst Rekt Capital also agrees that SOL could reach new highs.
"SOL has had a historic weekly close. For the first time, SOL closed above the key resistance level of $250. If SOL confirms $250 as new support, it will confirm a breakout to a new ATH. A historic retest is currently underway," the analyst wrote on X on November 25.
Source: Rekt Capital