Year-to-date (YTD), the price of Solana (SOL) has increased by 117% and has broken its previous all-time high. Despite that, investors will be hoping that the December 2024 Solana prediction will bring in more gains.
Whether that will happen depends on several factors. In this analysis, BeInCrypto examines some of these factors and what analysts say about the altcoin’s potential.
Sentiment Around Solana Declines, but Analysts Remain Optimistic
Solana’s price increase this year has ensured that social dominance remains at a relatively good level. Social dominance refers to the level of discussions around a cryptocurrency compared to other assets in the top 100.
A rise in social dominance indicates heightened discussion around an asset, while a decline suggests the market’s focus has shifted to other cryptocurrencies. According to Santiment, Solana’s social dominance currently stands at 6.09%, reflecting significant interest and active conversations about the asset.
This increase could be linked to SOL’s price action and the thriving meme coin activity on the blockchain. If sustained, then the December 2024 Solana prediction could be bullish.
Solana 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.
Interestingly, Quinlivan views trader skepticism as a potential positive, noting that it might set the stage for a rebound. However, he emphasized that SOL’s ability to rally 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 of last week. And now, with a retrace back below $240, sentiment is in the bottom 10% range compared to the past 3 months of data. This should be considered a good sign that it can rebound swiftly as long as Bitcoin can stabilize and at least stay in the $94,000 to $96,000 range throughout this week,” Quinlivan told BeInCrypto.
Solana Weighted Sentiment. Source: Santiment
If validated, this would also align with Raoul Pal’s prediction that SOL could hit a new all-time higher soon. Besides Pal, crypto analyst Rekt Capital also agrees that SOL could hit new highs.
“Solana has performed a historic Weekly Close. For the first time ever, SOL has Weekly Closed above the $250 major resistance. If SOL confirms $250 as new support. SOL would confirm a breakout into new All-Time Highs. Historic retest is in progress,” the analyst wrote on X five days ago.
SOL Price Prediction: Bull Flag Eyes $300
On the daily chart, the altcoin has formed a bull flag, suggesting that the December 2024 Solana prediction could have a higher value.
A bull flag is a bullish chart pattern consisting of two rallies separated by a brief consolidation phase. The pattern begins with a steep, almost vertical price surge, known as the “flagpole,” as buyers overpower 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’s price could rally toward $300 this month.
Solana Daily Analysis. Source: TradingView
However, if Bitcoin price fails to stay above $94,000, this might be difficult to achieve. In that scenario, SOL could decline to $214.99.
