- Solana whales are taking advantage of the dip and buying bargain tokens in hopes of a big rebound.
- But for this comeback to happen, two key conditions must align.
Solana [SOL] rose from $157 on Election Day to an all-time high of $264 in just 20 trading days, breaking the $260 ceiling and cementing itself as a standout player in the market.
This rapid rise highlights that SOL is a notable beneficiary of both external and internal trends.
Externally, SOL’s rally paralleled Bitcoin’s momentum, with BTC solidifying its position as the favorite asset class, broadening market inflows and propelling Solana to new highs.
Internally, Solana’s reputation as an “Ethereum Killer” has broadened its appeal and strengthened its position in key industries. statistics. However, over the past two weeks, SOL has faced significant resistance at its new ATH, leading to a decline below $240.
A recovery could occur under two main scenarios: first, intense FOMO caused by Bitcoin breaking the $100,000 barrier, which could spill over into SOL; second, turning $240 into support, paving the way for a new phase of price discovery.
If these conditions match, SOL could be on the verge of breaking out into a new ATH. So, what are the chances?
Growth potential now that major players are aware of the dip
Typically, altcoins experience a massive influx of capital once BTC enters high FUD (fear, uncertainty and doubt) territory, a phase that Bitcoin just broke through by reaching the historic milestone of $100,000.
As a result, a breakthrough to a new ATH may seem too ambitious for Solana for now, as investors’ focus has shifted to Bitcoin.
However, keeping Solana in play in the short term could be crucial, potentially preventing the price from falling below $220, as investors will likely keep their options open to avoid the risk of a possible Bitcoin correction at should market sentiment turn bearish.
This optimism is further supported by a neutral RSI, which signals a buying opportunity for investors looking for outsized returns once Bitcoin approaches an overheated state.
Whales appear to be following this strategy, with major banks buying up SOL at discounted prices after the coin’s price fell by more than 60% in the past two weeks.
Their support could help Solana regain the $240 price range in the coming days. Once this threshold is reached again, the conditions mentioned above will play a crucial role in determining Solana’s next direction.
Solana must regain his dominance
As noted earlier, Bitcoin’s big breakthrough has created the conditions for altcoins to transcend the psychological level. However, Solana may lag behind in this area.
Over the past 24 hours, as social media excitement built around the $100,000 excitement, Ethereum holders seized the opportunity for a bigger bite, with equally positive momentum in the green.
Source: CoinMarketCap
While it may be too early to comment on that, Solana has struggled to generate a similar response from investors, being stuck in a lower price range.
There is a silver lining, though: the big HODLers are holding strong. This makes their support even more important, as it will be crucial to absorb the increasing sales Busyespecially as retail investors shift their focus from Solana in favor of other alternatives.
Therefore, a break above $240 could trigger a wave of FOMO, which could act as a powerful psychological catalyst and lay the foundation for a new ATH.
Still, it all comes down to the “Crypto King”
The long-awaited anticipation is finally coming to rest as BTC reaches $100K for the first time. Greed will undoubtedly skyrocket analysts predict even more upside potential, despite growing signals of an overheated market.
For altcoins it is a do-or-die moment. Intensive profit-taking could cement their reputation as a “safe haven,” prompting traders to quickly diversify their portfolios and hedge against potential risks.
In this context, Solana is at a critical moment and offers bulls an excellent opportunity to aim for a home run, especially with whale support in the corner. Still, continued momentum will depend on a surge in retail interest.
Read Solana’s [SOL] Price forecast 2024–2025
This interest is likely to pick up once Bitcoin reaches its peak, leading to a massive sell-off – an opportunity Solana should be ready to exploit.
Therefore, $240 seems feasible for now. However, if Solana wants to achieve a new ATH above $264, whale support alone may not be enough. Retail investments and Bitcoin peaking will be two important factors to watch.
