Will Solana Price Double As Dominance Soars to New ATH?

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As a seasoned researcher with years of experience in the dynamic and unpredictable world of cryptocurrencies, I must admit that the recent surge in Solana’s price and market dominance has piqued my interest. The rapid growth of this blockchain network, particularly its efficiency in handling transactions at incredibly low fees, is a testament to its potential.

On November 18, Solana’s price peaked at $244.56 and then dipped slightly to $230.98 in the same day. This price surge occurred concurrently with a rise in Solana’s market dominance to an unprecedented high, indicating a growing trust among investors, which might trigger higher demand for SOL, possibly causing its price to climb further.

Currently, Solana’s (SOL) price stands at $242.91, marking a 2.6% increase over the past day. The value of SOL is nearly touching its previous record high, leaving market analysts speculating about how much higher it might climb once it surpasses this milestone by as much as 100%.

Solana Market Dominance Breaks New ATH

According to data from Tradingview, Solana’s market influence has reached an unprecedented peak of 3.83%, suggesting that the network is expanding and capturing a larger portion of the overall market. Interestingly, when compared to the top five cryptocurrencies by market capitalization, Solana has shown the most significant growth this year, increasing its market dominance by 33% from its lowest point of 2.23%. On the flip side, Ethereum experienced a decline in its market share, dropping by approximately 26.45%.

One significant reason for Solana’s rise in market influence is its affordable transaction costs and swift processing speed. These advantages have fostered an environment conducive to the growth of meme coins, which has resulted in a shift of liquidity away from Ethereum.

Solana Price Analysis: Breakout or Top Signal?

The price forecast for Solana suggests that it experienced a powerful surge after surpassing its supply zone between $210 and $245, indicating a transition from a holding pattern to a bullish movement. This upward breakout is supported by the formation of a new peak in its value, reinforcing the persistence of the bullish trend.

During the surge, it became clear that there’s a high level of enthusiasm surrounding the recent price trend, as indicated by the substantial rise. However, the Relative Strength Index (RSI) suggests that we might be entering an overbought zone for Solana, implying that the price could soon experience a temporary pause or minor reversal at resistance levels.

The most immediate resistance level for SOL price is $245, which coincides with the 0.618 Fibonacci extension. Beyond that, Solana is poised to surge to $345.

If the bears manage to drive the SOL price downward, it could potentially meet resistance and find support at approximately $210 – a level that was once a resistance but has since become a potential support point.

Can SOL Price Sustain Momentum for Further Gains?

The Solana Average Directional Index (ADX) recently surpassed a significant barrier (20), implying an increase in the cryptocurrency’s volatility to unprecedented levels. Notably, the last time volatility exceeded this threshold was during the short-term bull run in March. This could be an indication that the Solana rally might still be at its onset.

crypto expert Bagsy further mentioned that Solana might mirror Ethereum’s success from 2020, where it multiplied by 3.14 times following the break of its 2017 record high. Bagsy anticipates that if Solana surpasses its previous (2021) all-time high of $248, it could increase by an equivalent or even greater percentage.

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2024-11-18 11:29