Solana, the fifth among cryptocurrencies by market capitalization, could see a substantial price increase if the current bullish momentum continues and it successfully breaks its downtrend correction.
With the recent approval of Bitcoin exchange-traded funds (ETFs) injecting new inflows and igniting a sense of bullish sentiment in the market, Solana (SOL) is emerging as one of the top gainers in the last 24 hours.
The cryptocurrency has seen a 4.5% rise, trading at $99, aiming to reclaim the important $100 milestone lost during a recent deep correction.
Solana Bulls Targeting $150-$165 Price Range
Renowned crypto analyst Ali Martinez suggests that Solana is breaking out of a bullish flag pattern formed on the 4-hour chart. A sustained close above the $106 mark may trigger a notable 47% rally, propelling SOL towards the $150 to $165 price range.
However, Solana has currently retraced below the upper boundary of the bull flag formation, which sits at $103. Despite this, a breakout could be imminent if growing interest in the token persists alongside sustained bullish momentum.
Such scenario would position SOL to reclaim its previously lost highs and set its course toward Ali Martinez’s price targets between $150 and $165.
SOL Market Cap Quadruples, DeFi and NFT Metrics Soar
Solana has shown notable performance during the fourth quarter of 2023, positioning itself as a leader in the cryptocurrency market rally, according to a recent report by Messari. One of Solana’s key achievements in the fourth quarter was its notable increase in market capitalization.
SOL concluded the year with a market cap of $43.8 billion, representing a staggering 423% quarter-on-quarter (QoQ) growth and a staggering 1,106% year-over-year (YoY) increase, which propelled SOL to surpass notable tokens such as ADA, USDC, and XRP in market capitalization, securing the fifth position among all tokens.
Solana started 2023 ranked 17th in market capitalization, highlighting its exponential rise in prominence. The Solana network’s decentralized finance (DeFi) total value locked (TVL) also saw significant growth.
Solana’s DeFi TVL increased by 303% QoQ and an impressive 505% YoY, reaching $1.5 billion. The report also highlights the notable increase in DeFi volume on the Solana network.
The average daily spot DEX volume saw a staggering 1,116% quarter-on-quarter growth, reaching $359 million. Among the contributors to this growth, Orca accounted for 45% of Q4 volumes, followed by Raydium with a 29% market share.
Phoenix, a fully on-chain central limit order book, stood out for averaging over 9% market share by DEX volume. Solana’s influence in the NFT space also saw substantial growth during the fourth quarter. Average daily NFT volume increased 356% quarter-on-quarter, reaching $4.8 million.
Solana’s market share in NFT volume, excluding Bitcoin, grew from 9% to 26% QoQ, demonstrating its growing importance in the NFT market.
As Bitcoin ETF Approval Builds Confidence, Solana Wins
Following the approval of the Bitcoin ETF by the US SEC, TD Cowen argues that it must follow the lead of international cryptocurrency innovation. Analysts believe this measure is tactical; The SEC wants to strengthen its control over the cryptocurrency market ahead of possible legislative action.
As of January 11, Solana price is $102, with a market cap of $45 billion, which is up 12% on the daily chart. Its Layer 1 blockchain is one of the fastest and cheapest and hosts many DeFi platforms as well as NFT marketplaces.
According to CryptoPredictions, SOL price for today (12.01.2024) is forecast to be in the price range of $84,778 – $124,674. Solana price is expected to end at $99,739 today.
By Audy Castaneda
