Solana has become a preferred option for many venture capitalists and hedge funds, with belief that its price could reach new ATH during this bull market cycle. As Bitcoin aims for new all-time highs above $90K, potentially reaching $100K by year-end, there is significant buying interest in the altcoin market. Solana, leading the charge, has rallied past the $200 mark.
Solana Rises Despite Declining On-chain Metrics
Recently, Solana’s price experienced a substantial increase, crossing the $200 threshold and reaching a three-year peak at $225.21. This surge in Solana’s value is driven by the positive trends in the cryptocurrency market and increased demand for the Layer 1 blockchain network.
Over the past week, the cryptocurrency market, particularly Solana, has seen significant gains, outperforming even Bitcoin. Solana’s price surged by 38%, which notably exceeds Bitcoin’s 7-day rise of 27%.
Also read: Solana’s (SOL) New ATH is Loading and Here’s Where It Could Be
The market saw massive inflows following Donald Trump’s win in the 47th presidential election, as well as increased activity on cryptocurrency prediction markets. With Bitcoin reaching a new high above $93K, most major altcoins also experienced robust recoveries, including a sharp increase in Solana’s price.
However, on-chain data turns bearish as the numbers of active and new addresses have been declining. Data shows that active address count has dropped from 5.6 million to 4.9 million in seven days. On the other hand, the new address count dropped from 5.5 million to 5 million in just a week.
Despite this, MV Global’s Q4 2024 Crypto Investment Manager Survey projects SOL price to reach $600 during this bull cycle. The survey gathered insights from 76 leading venture capital and hedge fund managers, revealing several trends in the market.
Notably, 33% of respondents believe Solana’s price will surpass $600 in this cycle, while 23.2% view $600 as the ceiling. The remaining participants expect Solana’s price to stay within the $150-$300 range.
What’s Next for SOL Price?
Solana recently surged past the $210 resistance, giving the upper hand to the bulls. However, the price struggled to maintain its momentum above $225, resulting in a minor pullback below 23.6% Fib level. As of writing, SOL price trades at $219, surging over 3.8% in the last 24 hours.
Despite efforts by the bears to drive the price below the $200 mark, the bulls successfully maintained control, indicating an attempt to establish $210 as a new support level. If successful, the SOL/USDT pair could climb to $225 and potentially reach $260.
As the RSI level now trades above the midline at level 57, we might soon see a break above the $225 resistance level.
Conversely, if the bears wish to curb this upward trajectory, they must swiftly push the price under the 50-day SMA at $188. Doing so could trap overzealous bulls, leading to a wave of sell-offs and potentially triggering a drop to the crucial support level of $164.
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