Is Solana on the verge of a breakout or a breakdown? While bearish signals dominate the short-term charts, 2024 has been a year of explosive growth for Solana. Will a lead over Ethereum in social mentions drive a bullish 2025 for Solana?
With Bitcoin price BTC $84 958 24h volatility: 0.4% Market cap: $1.69 T Vol. 24h: $10.53 B dropping under $98K and the total crypto market cap excluding Bitcoin and Ethereum ETH $1 598 24h volatility: 1.3% Market cap: $193.05 B Vol. 24h: $5.47 B down to $950 billion, a bearish grip tightens over top altcoins. Amid such conditions, the Solana price trend takes an intraday hit.
Failing to crossover the $200 threshold, SOL price SOL $138.1 24h volatility: 3.0% Market cap: $71.37 B Vol. 24h: $2.83 B is trapped in a range-bound movement. Will Solana witness a final bullish surge for a breakout run beyond $200?
Solana Price Analysis
In the daily chart, the SOL price trend reveals a sideways shift after facing a bullish failure to cross the $200 psychological mark, creating a consolidation range between the support level of $100 and $75. This reflects a period of indecision in the market.
The overhead rejection is preparing for a negative run, with the downfall crossing under the 50-EMA line and the 20-EMA line in the 4-hour chart. Currently, SOL is trading at a market price of $193.46, forming its third consecutive bearish candle in the 4-hour chart.
As bearish momentum grows, the price is likely to retest the crucial support level, adding to the downside risk. Supporting this trend, the 4-hour RSI line has dropped below the 50-EMA line, reflecting a surge in selling pressure.
2024: A Bullish Year for Solana
Despite this short-term bearish sentiment, the overall year 2024 has been bullish for Solana, with a year-to-date growth of 90.77%. Solana has experienced remarkable gains in several areas.
⚡ LATEST: Bitcoin and Solana hit all-time highs in monthly trading volume last month.
Meanwhile, Ethereum remains around 50% below its 2021 peak. pic.twitter.com/V4hwP1Pnhq
— Cointelegraph (@Cointelegraph) December 25, 2024
Furthermore, BTC and SOL have hit an all-time high in monthly trading volume over the last month, further cementing their positions in the market.
Solana Outpaces Ethereum in Social Mentions
Solana has also outpaced Ethereum in social mentions across multiple platforms. Over the past six months, SOL has been mentioned in 12.6 million social mentions, surpassing the 11.42 million mentions of Ethereum.
2024 was the year that Solana outpaced Ethereum in mentions across social media. Over the last 6 months, $SOL has seen 12.6M social mentions vs. $ETH with 11.42M.
— LunarCrush Social Intelligence (@LunarCrush) December 26, 2024
This marks a significant increase, showcasing growing community engagement and interest in the network.
Surging DEX Activity on Solana
The decentralized exchange (DEX) activity over Solana has also seen a substantial boost. The DEX volume over Solana was 83.7% larger than Ethereum in November, with Solana recording $129.7 billion compared to Ethereum’s $70.6 billion.
Furthermore, this marks the second consecutive month surpassing the $100 billion mark in decentralized exchange volumes. This highlights the growing dominance of Solana in the DeFi sector.
Record-Breaking Total Value Locked (TVL)
Amid the 2024 recovery, the Total Value Locked (TVL) on the Solana network has reached a new all-time high, peaking at $23.08 billion.
Currently, Solana’s TVL stands at $21.136 billion, with a 24-hour revenue of $1.35 million, reflecting the network’s resilience and rapid growth.
Solana Price Target
Based on the current price action, the SOL price is likely to retest the $175 support level. However, a Santa rally in the crypto market could propel Solana for the last bullish ride in 2024.
In such a case, the $200 breakout run in the SOL price could aim for the price targets of $220 and $250.
Conclusion
While SOL price faces short-term bearish pressures, its robust growth throughout 2024, rising social mentions, increasing DEX activity, and record-breaking TVL indicate a strong foundation for the future. These factors project a bullish outlook for 2025. Furthermore, as the broader market recovers, Solana will continue to solidify its position in the crypto space.
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