Solana’s price has declined 16.8% from its year-to-date high as the recent crypto boom subsided. On Sunday, it was trading at $220, with a market cap of $105 billion, ranking it as the fifth-largest cryptocurrency.
Despite the pullback, SOL has several long-term catalysts. It has emerged as a major competitor to Ethereum, the leading blockchain. In the past 30 days, its total value locked has surged 18% to over $9.12 billion, and there are approximately $30 billion worth of stablecoins in its ecosystem.
Solana dominates the Decentralized Exchange space, with a seven-day volume of over $29.7 billion, exceeding Ethereum’s $21 billion. Key Solana DEX networks include Raydium, Orca, and Meteora. It also has a significant presence in the Decentralized Public Infrastructure and meme coin sectors. HiveMapper and Helium, part of its DePIN networks, are performing well, and Solana meme coins have a combined market cap of over $19 billion, led by Dogwifhat, Bonk, Peanut the Squirrel, and Popcat. HiveMapper aims to rival Google Maps, having mapped around 17 million kilometers of roads and achieving 29% global coverage. Helium is revolutionizing the wireless industry through a decentralized network.
Anticipation is high that the incoming Trump administration may ease crypto regulations and potentially approve a spot SOL ETF, which could draw institutional capital like Ethereum, which has seen inflows of over $2.26 billion in recent months.
The daily chart reveals that SOL peaked at $264.40 on Nov. 22, retreated to $220, and then dipped and retested the crucial $205 support level, which was the highest swing in March and the upper part of a cup and handle pattern. Solana remains above the 50-day moving average, indicating an ongoing bull market. It has also formed a falling wedge pattern, a bullish signal. Thus, a significant bullish breakout is likely in the coming weeks, with an initial target of the year-to-date high of $264 and a subsequent target of $400.
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