The Solana price showed a recovery on the 4-hour SOL USD chart, constantly closing above its major moving averages.
After a challenging period, SOL established a strong support base around $184.20, which was confirmed by repeated moves that did not go lower. This phase set the stage for the gathering.
SOL began a sharp rally, decisively crossing the $193.44 mark, which coincided with the 200 EMA—a critical resistance that turned into a support level.
The momentum didn’t let up; instead, it strengthened as the price jumped above the $195.33 and $204.64 levels, closing near the $210 mark.
This move aligned perfectly with the uptrend line, reinforcing the potential for a continuation of the uptrend.
Notably, Solana price broke through the 50 EMA just before this bounce confirmed the bullish sentiment.
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Traders and analysts eyeing resistance at $205; a break and hold above it could confirm SOL’s re-entry into a sustained uptrend.
This movement indicates increasing investor confidence and potential opportunities for further gains, especially if SOL maintains its position above these critical thresholds.
Solana outperforms Bitcoin and Ethereum
As of December 2022, Solana’s realized capital change was impressive, outperforming both Bitcoin (BTC) and Ethereum (ETH).
This period marked SOL as an increasingly significant player within the blockchain ecosystem. During 727 trading days, SOL recorded top performance on 389 days.
The pronounced peaks of Solana’s realized price cap were particularly visible in mid-2024, where its performance chart rose sharply above those of BTC and ETH.
This increase was correlated with an increase in the price of SOL, signaling strong market confidence and strong capital inflows.
Moreover, this data reflects broader market trends where SOL’s aggressive growth phases have been closely aligned with its peaks.
SOL’s realized cap saw significant growth in May while its price simultaneously surged, reaching new highs. This pattern focused on the direct impact of increasing capital inflows on market valuation.
In contrast, BTC and ETH showed more modest increases in their realized caps over the same period, indicating that while they continue to grow, their pace has not caught up to Solana’s pace.
Solana’s distinctive performance over these months positions it as a compelling asset within the competitive cryptocurrency space.
If Solana’s price continues to maintain its upside in capital growth, it could further solidify its status as a top asset in the blockchain arena.
Altseason could come in January if the price of Solana rises above this level
Based on historical patterns in the Total 2 Index (TOTAL2), if the price of Solana breaks above $205, it could indeed be a catalyst for the upcoming pre-season starting in January 2025.
Just like in 2020, Total2 went through a period of consolidation from August to October, a contraction triangle pattern, followed by a breakout in November both years.
In December 2020 and 2024, there was a mild lull phase after the breakout, setting the stage for significant waves.
The rise from January to May 2021 saw exponential growth among various altcoins, hinting at a repeat of the cycle for 2025 based on these recurring trends.
The November 2024 breakout candle was particularly significant, reflecting the 2020 movements that preceded a significant market rally.
If this Solana price pattern holds true, Total2 suggests that the off-season in early 2025 could reflect the rapid and extensive gains experienced in 2021.
The expectation of a fast, impactful preseason is supported by a repeated historical pattern, suggesting that a similar five-month opportunity could occur again.
With Solana’s rise potentially fueling the enthusiasm of the broader market, the stage is set for an expansive preseason, potentially replicating the trajectory of 2021.
