What price for SOL before the end of the year?

The Solana cryptocurrency is establishing itself as one of the major players of the moment.

It not only displays massive hype around a potential return to its all-time high, but also an explosion in volumes on its native DEXs, while its traders play the maximum on the derivatives market.

This renewed momentum is driven by a combination of solid fundamental metrics, a craze on decentralized exchanges (DEX) and increased speculation around the possible approval of a spot ETF.

Solana Price Skyrockets: A Combination of Fundamentals and FOMO

The Solana blockchain’s native token, SOL, finds itself in red-hot territory, flirting with its former all-time high (ATH) of $260, reached in November 2021.

The price peaked at $248.44 on November 18, marking a strong comeback after more than three years of consolidation and fluctuations.

This recent Solana rally is based on strengthened fundamentals, but also on typical market dynamics where the fear of missing the train (“Fear of Missing Out”, or FOMO) plays a key role.

On a technical level, the token benefits from a increased liquidity, supported by massive activity on the network’s native DEXs, with a record weekly volume of $41.2 billion.

This figure far exceeds previous all-time highs of 18 billion and positions Solana as an undisputed leader among blockchains, even surpassing Ethereum with seven times higher volume over the last 24 hours.

This performance is amplified by the craze for memecoins, which flooded the ecosystem with record trading volumes, fueling both volatility and investor interest.

Furthermore, open interest in SOL derivatives jumped 96% in just two weeks ($5.64 billion), suggesting a significant increase in leverage, a clear indicator that the market anticipates continued upward movement.

This increase in speculative activity is also coupled with growing anticipation around a Solana spot ETF, reinforced by recent developments in the US regulatory framework.

Technical analysis: Solana ready to break the historic resistance of $260?

On a technical level, SOL shows powerful bullish signals which place it in a critical configuration.

The monthly chart displays a “cup and handle” formation, a classic structure with a 95% historical success rate for upward breakouts and a theoretical projection that could push the price towards $400.

While at the moment the token’s value sits around $242, the Bollinger Bands reveal that Solana is trading above the upper band, indicating strong buying pressure and increased volatility.

Critical Support Levels are at $210 and $203.94, while the immediate resistance zone remains pegged at $260, aligned with the old ATH.

The Parabolic SAR indicator, with its points located below the price candles, confirms an intact uptrend.

However, the issue is whether SOL can maintain this momentumt turn historical resistance into support, a decisive signal to trigger price discovery beyond current levels.

With buying momentum reinforced by high volumes and renewed institutional interest, the odds of breaching this barrier increase, but a rapid correction remains possible if the price fails to maintain the $240 mark.

Scenarios for SOL before the end of the year: consolidation or explosion?

Price predictions for Solana before the end of 2024 range between cautious optimism and aggressively bullish expectations.

If SOL manages to exceed $260, a rapid rally toward $300 seems plausible, fueled by positive speculation and strong metrics like DEX trading volume, which continues to break monthly records ($70 billion recently).

At this level, Solana could enter “price discovery” mode, with more ambitious targets located around $350-400, according to analysts.

However, the increase remains conditional on a favorable macro situation and the maintenance of the current dynamic.

Stagnation below $260 could lead to a period of consolidation, where levels like $210 or even $196 could be tested, particularly if the FOMO effect subsides or volumes on DEXs decrease.

Finally, the rumors around the Solana ETF, while challenging, add a layer of uncertainty that could cause volatile moves in the coming weeks as traders closely monitor every regulatory signal and development in the overall cryptocurrency market.

Source : CoinMarketCap

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