Year to date (YTD), the price of Solana (SOL) appreciated 117% and reached a new all-time high (ATH). Despite this, investors expect December 2024 to bring more gains for the altcoin.
Whether this will happen depends on several factors. In this analysis, BeInCrypto examines some of these factors and what analysts say about future price movement.
Sentiment around Solana wanes, but analysts remain bullish
Solana’s price action this year has ensured that social dominance remains at a relatively good level. Social dominance refers to the level of discussion around a cryptocurrency compared to other assets in the top 100.
An increase in social dominance indicates heightened discussions about an asset, while a decline suggests that the market’s focus has shifted to other assets. According to Santiment, SOL’s social dominance currently stands at 6.09%, reflecting significant interest and active conversations about the asset.
This increase could be linked to price action and the increasing activity of memecoins on its blockchain. If maintained, the forecast for December 2024 could be optimistic.
Solana's Social Dominance. Source: Santiment
Regarding SOL’s outlook, Brian Quinlivan, Lead Analyst at Santiment, suggests that the cryptocurrency’s declining sentiment could significantly influence its performance in December.
In fact, Quinlivan sees traders’ skepticism as a potential positive, noting that it could set the stage for a recovery. However, he emphasized that Solana’s ability to recover would depend on Bitcoin maintaining a price of at least $96,000.
Traders were already showing some disbelief when the asset topped out on Thursday/Friday last week. And now, with a pullback below $240, sentiment is in the low 10% range compared to the last 3 months of data. This should be taken as a good sign that it could recover quickly, provided Bitcoin can stabilize and at least stay in the $94,000-$96,000 range throughout this week, Quinlivan told BeInCrypto.
Solana's Weighted Sentiment. Source: Santiment
If validated, this would also be in line with Raoul Pal's prediction that SOL could reach a new record soon. In addition to Pal, crypto analyst Rekt Capital also agrees that the asset could reach new heights.
Solana has achieved a historic weekly close. For the first time, SOL has closed above the key resistance of $250 on a weekly basis. If it confirms $250 as new support, it would confirm a breakout to new highs. A historic retest is underway, the analyst wrote on X five days ago.
Price Prediction: Bullish Flag $300
On the daily chart, the altcoin has formed a bullish flag, suggesting that the forecast for December 2024 could be a new all-time high.
A bull flag is a bullish chart pattern that consists of two rallies separated by a brief consolidation phase. The pattern begins with a steep, nearly vertical price increase, known as a “flagpole,” as buyers outnumber sellers.
This is followed by a pullback, where parallel upper and lower trendlines form the “flag,” signaling a pause before the next upward move. With the technical pattern already formed, Solana could rally to $300 this month.
Solana Daily Analysis. Source: TradingView
However, if the price of Bitcoin fails to hold above $94,000, this may be difficult to achieve. In this scenario, SOL could fall to $214.99.
The article What to Expect from Solana (SOL) in December? Analysts Opinion appeared first on BeInCrypto.
