Solana (SOL) is up for a major breakout rally as its price hovers around its previous all-time high (ATH).
Crypto investors are heavily investing in altcoin due to its current popularity, specially the surge in Solana-based meme coins and growth in its network activity. This spiked SOL price in recent times making it achieve new highs. The token has lived up to the Ethereum Killer reputation by making headway into the ETH market share.
The week began with Solana gaining 2.6% over the last 24 hours to trade at $242.91, almost near its ATH. Analysts and crypto experts have been speculating since then that the coin will rally 100% after it touches the ATH.
Meanwhile, the altcoin's market dominance has reached a new all-time high of 3.83% which shows that the Solana network has captured a good part of the market and the blockchain is growing.
In terms of market capitalisation, Solana has the best year-to-date performance amongst the top five cryptos as its market dominance went from 2.23% to 33%. In contrast, Ethereum fared poorly with a 26.45% market dominance.
SOL’s dominance can be attributed to its low transaction fees and fast execution which led to the launch of several Solana-based meme coins. These tokens are thriving on the chain and pulling liquidity from the Ethereum network.
The price chart shows that the L1 chain is poised for a breakout after it crosses the $210–$245 support zone, marking a shift from the consolidation phase to a bullish momentum. SOL has already set a new higher high which suggests that the bullish trend will continue.
The RSI is lying in overbought conditions which points towards a consolidation or pullback period near the $245 resistance level which coincidentally is the 0.618 Fibonacci extension point. Once SOL crosses that point it is expected to rally to $345.
However, if the bearish signals take over then the token can go down and find support at $210 which was a resistance level earlier.
The average directional index (ADX) of Solana has surpassed the 20 mark, an important resistance level indicating an increased volatility of the cryptocurrency. The last time the price volatility reached this point was in March when there was a bull run. This means another bull run is likely to happen.
Meanwhile, crypto analysts like Bagsy have highlighted how the altcoin is likely to follow Ethereum's 2020 performance which led to ETH gaining 3.14x after crossing its 2017 high. SOL could see a similar price hike if it goes past its 2021 ATH of $248.
At the time of writing, SOL was trading at $239, up 2.43% in the last 24 hours while its trading volume declined by 7.44% to reach $8.44 billion and the market cap stood at $113.42 billion.