Solana ATH in Sight? 2 Key Catalysts Driving SOL Momentum

• Solana (SOL) is on the verge of setting another all-time high record as its price currently falls above the Super Trend line. 
• However, an analyst has pointed out that any decline from the current price point could send the asset to $231, and subsequently to $213. 

Solana (SOL) set a new all-time high price record on November 23 after breaching the multi-year resistance level to peak at $263. According to our market data, the asset has since declined by 1% as it hovers around the $253 mark. Meanwhile, analysts anticipate another run to eclipse the current peak since two major indicators show a positive outlook.

Dominance of Bulls

According to analysts, Solana bulls have maintained an impressive level of dominance, outpacing bears’ control by a significant margin. Analyzing its one-day price chart below, it was observed that the price is currently trending above the green line of the Super Trend indicator.

Source: TradingView

Analysts explained this by pointing out that whenever the Super Trend line falls above the price, it signals that bears are in control. However, when this trend line turns green and moves below the price, it indicates that bulls are dominating. Analysts explained that the green line, in this case, serves as a support level that buyers could rely on for a rebound.

The Price of Solana and the Ichimoku Cloud

According to data, Solana’s bullish outlook is confirmed by the discovery that the price currently falls above the Ichimoku Cloud. Based on our analysts’ interpretation, this indicator measures the momentum of the market trend of an asset to identify potential support or resistance levels.

From the chart below, the Cloud is currently the asset’s support level. Meanwhile, most Solana investors who appear to be in profit are reportedly selling, driving the price to the current point. If this continues, the asset could decline further to $231.35. If bulls fail to stage a bounce back from that level, Solana could fall again to $213 and invalidate the possibility of setting a new all-time high in the near term.

Source: TradingView

Prior to this pullback, an independent on-chain analyst identified as Titan of Crypto predicted that SOL could hit $400 since it is forming a bullish pattern on its monthly price chart. According to him, the formation of the cup-and-handle pattern has a success rate of 95% with an average profit yield of 54% from breakout. This coincides with our recent report that the asset has more room for growth.

Dominance in On-chain Activities

Amid the backdrop of its bullish outlook, Solana has reached a new weekly high of $41.2 billion in its decentralized exchange (DEX) volume. The previous high was $18 billion, which was recorded in the week before, and around $17.5 billion witnessed in March 2024.

Source: DefiLlama

Fascinatingly, its total volume share is more than the combined share of Base, BNB Smart Chain, Arbitrum, and the Ethereum networks. In just 24 hours, it dominated the total volume with a share of 48.27%. Base, which scored the second position, had a share of 10.55%.

Commenting on this, a crypto researcher known as Aylo disclosed:

If SOL can hit a new ATH vs BTC then it will achieve something that ETH couldn’t manage last cycle. Even with DeFi and NFT mania, ETH didn’t come close to its ATH against BTC set in June 2017.