Solana's price surged to $244, with its dominance reaching an all-time high. As investor confidence grows, if SOL breaks past $245, its price could potentially double.
The price of Solana soared to an intraday high of $244.56 on November 18, before dropping to $230.98 later that same day. This increase coincided with its market dominance reaching an all-time high, indicating growing investor confidence, which could lead to increased demand for SOL, potentially driving up the price.
As of the time of writing, the price of SOL is $242.91, up 2.6% in the last 24 hours. The price of SOL is just inches away from its previous all-time high, and market observers are curious to see how much it can rise by 100% after breaking this barrier.
Solana's market dominance reaches a new high
Data from Tradingview shows Solana's market share has risen to an all-time high of 3.83%, indicating that the network is growing and capturing a larger market share. Compared to the top 5 cryptocurrencies by market capitalization, Solana has performed the best this year, with its market share increasing by 33% from the annual low of 2.23%. Ethereum has performed the worst, with its market share declining by 26.45%.
One of the main factors contributing to the surge in market dominance is Solana's low transaction fees and fast execution speed. This efficiency has allowed the meme coin craze to thrive on-chain, drawing liquidity away from Ethereum.
Solana Price Analysis: Breakout or Top Signal?
Solana price predictions indicate a strong upward breakout for the L1 chain after breaching the supply zone around $210-245. This suggests a shift from consolidation to bullish momentum. The asset has reached new highs, affirming the continuation of the bullish trend.
Significant increases were observed during the breakout, confirming strong interest in the current price trend. The Relative Strength Index (RSI) indicates overbought conditions, suggesting that Solana's price may face brief consolidation or a pullback near resistance levels.
The most direct resistance level for SOL's price is $245, aligning with the 0.618 Fibonacci extension line. Beyond that, Solana is expected to surge to $345.
Conversely, if bears push the price down, SOL may find support around $210, which was previously a resistance level turned support.
Can SOL's price maintain further upward momentum?
Solana's Average Directional Index (ADX) has just broken through a key resistance level (20), indicating that the volatility of the crypto asset has risen to new levels. The last time volatility exceeded this level was during a mini bull market in March. This could signal that Solana's rebound is just beginning.
Cryptocurrency analyst Bagsy also noted that Solana may repeat Ethereum's performance in 2020, as Ethereum surged 3.14 times after breaking its 2017 high. The analyst predicts that if Solana breaks its previous all-time high of $248 (from 2021), its gains could reach the same or greater percentage.
