Since the beginning of the year (YTD), the price of Solana (SOL) has increased by 117% and reached an all-time high. However, investors are hopeful that the Solana December 2024 forecast will bring further gains.
Whether this will happen depends on several factors. In this analysis,
I will examine some of these factors and what analysts are saying about the potential of the altcoin.
Sentiment around Solana eases, but analysts remain optimistic
Solana’s price surge this year has ensured that social dominance remains at a relatively healthy level. Social dominance refers to the level of discussion around a cryptocurrency compared to other assets in the top 100.
A rise in social dominance indicates increased discussion around a particular asset, while a decline indicates that market focus has shifted to other cryptocurrencies. According to Santiment, Solana’s social dominance currently stands at 6.09%, reflecting significant interest and active conversations around the asset.
This rise could be related to the SOL price action and the booming meme coin activity on the blockchain. If this continues, Solana December 2024 forecast could be bullish.
Regarding SOL’s outlook, Brian Quinlivan, lead analyst at Santiment, suggests that the declining sentiment towards the cryptocurrency could significantly impact its performance in December.
Interestingly, Quinlivan sees trader skepticism as a positive, suggesting that it could pave the way for a recovery. However, he stressed that SOL’s ability to recover will depend on Bitcoin maintaining a price of at least $96,000.
“Traders were showing some skepticism when the asset topped out on Thursday/Friday last week. Now, with a pullback below $240, sentiment is in the lower 10% range compared to data from the past three months. This should be taken as a good sign that it could rebound quickly as long as Bitcoin can stabilize and at least stay in the $94,000-$96,000 range throughout this week.”
If verified, this would also be in line with Raoul Pal’s prediction that Sol could hit a new all-time high soon. In addition to Pal, crypto analyst Rect Capital also agrees that Sol could hit new all-time highs.
“Solana has posted a historic weekly close. For the first time ever, Sol closed above key resistance at $250. If Sol confirms $250 as new support. Sol will confirm a breakout to new all-time highs. Historic retest underway,” the analyst wrote on X five days ago.
SOL Price Prediction: Bullish Flag Targets $300
On the daily chart, the altcoin has formed a bull flag, indicating that the Solana December 2024 forecast could be of higher value.
A bull flag is a bullish chart pattern consisting of two highs separated by a short consolidation phase. The pattern begins with a sharp, almost vertical rise in price, known as a “flagpole,” where buyers overpower sellers.
This is followed by a pullback, as the upper and lower parallel trend lines form a “flag”, indicating a pause before the next upward move. With the technical pattern already formed, Solana price could rally towards $300 this month.
However, if Bitcoin price fails to stay above $94,000, it may be difficult to achieve this. In this scenario, Sol may drop to $214.99.