The Solana (SOL price is up over 14% in the last 24 hours and is now trading above $71. These are the main reasons for SOL’s latest price rally.
#1 Solana price follows Bitcoin’s chart pattern
The Solana price is poised to mirror last week’s Bitcoin (BTC) price action. Crypto analyst Jelle highlighted the similarities in a post on X. He said: “In bull markets, the simple patterns suddenly start working again. Can SOL follow in Bitcoin’s footsteps? […] Simple patterns still work. Let’s go!!”
Simple patterns still work.
Let’s go!! https://t.co/YFHliFfkG1 pic.twitter.com/dddH2XB5du
— Jelle (@CryptoJelleNL) December 8, 2023
What’s the backstory? The Solana price chart currently reflects Bitcoin’s recent pattern and shows an ascending triangle formation. This bullish pattern, characterized by a flat upper trendline as resistance and a rising lower trendline as support, indicates accumulation by buyers and potential for upside momentum.
Bitcoin demonstrated this pattern with a resistance line around $38,000 and an ascending trendline from the early November low. Last Friday, December 1, Bitcoin broke through the neckline, leading to a surge to over $44,000.
Similarly, Solana’s chart shows resistance around $68 and a similar rising trendline from mid-November. With Solana breaking the $68 resistance today, parallels are being drawn with Bitcoin’s rally, suggesting that SOL price could move even higher in the coming hours and days.
#2 Airdrop Seasons attracts investors
Airdrop season is coming to the Solana ecosystem. While the JITO airdrop (Jito is a Solana-based liquid staking token protocol) made waves yesterday, there are already new ones on the horizon, such as Kamino Finance and Celestia (TIA). Airdrops have historically had a very positive impact on the L1 coin as they attract new capital to the ecosystem, which especially necessitates the purchase of the L1 coin such as SOL.
Chris Burniske, partner at Placeholder VC, noticed“Community-based airdrops within the Solana community will create massive wealth and loyalty effects, further washing away the ashes as the phoenix rises. This trend is only just gaining momentum. […] Congratulations to all JTO hodlers and Jito users who have been rewarded – Jito and his colleagues are actively discussing how to engage and empower their communities equitably, at scale.”
#3 Network growth continues
Solana’s DeFi sector is expanding rapidly. Analyst Jay marked several key figures: net inflows from ETH to SOL via Wormhole surpassed 48 million in the past 30 days, DEX volume increased from 17.69 million on October 14 to 466.44 million on November 10, and stablecoin market cap has increased by more than 100 million since October 16.
DeFiLama facts shows that Solana’s TVL in DeFi applications grew 117% last month to $840.99 million, ranking sixth among all chains and leading in percentage growth. Ethereum, despite leading the way with a TVL of $29.77 billion, only saw a 46% increase.
#4 Endorsement by Arthur Hayes and VanEck
Arthur Hayes, founder of BitMEX, has been bullish on SOL in recent days, predicting a rise to $100. He expressed this feeling to X, to report, “Who’s ready for a weekend of alt szn green doji pissing? Can we send SOL more than $100? Let’s do it, family.” In another post he added: “Tis the season for stinky fruit bitches. Can’t stop, won’t stop until SOL = $100.”
Remarkably, financial giant VanEck is also extremely bullish on Solana in its Bitcoin and crypto predictions for 2024. The company predicts that Solana “will become a top 3 blockchain based on market capitalization, Total Value Locked (TVL) and active users.”
According to the analysis, “ETH will lose market share to other smart contract platforms with less uncertainty around their scalability roadmap, such as Solana.” VanEck added that “decentralized exchange (DEX) market share in spot crypto trading will soar to an all-time high as high-throughput chains like Solana will improve the on-chain trading experience for users.”
At the time of writing, SOL was trading at $71.67.
