Solana Market Cap Surges to $105 Billion Amid Potential Correction
Solana (SOL) has experienced significant growth, achieving a 66.8% increase over the past three months and reaching a new all-time high (ATH). However, it has recently lost attention to altcoins like XRP, which may lead to a potential correction.
Solana To Retest $200?
Over the last year, Solana has surged by 231%, becoming a focal point in the cryptocurrency market with its memecoins and DeFi activities surpassing those of Ethereum. SOL overtook Binance Coin (BNB) to become the fourth-largest cryptocurrency by market capitalization, approaching $200 on November 6, with a market cap of $88 billion.
Since then, its market cap has increased nearly 20% to $105 billion, but momentum has slowed as other cryptocurrencies gain traction. Recently, XRP surpassed both Solana and Tether (USDT), pushing SOL down to the fifth position by market cap.
Following a 14% decline from its latest ATH of $263 recorded nine days ago, analysts have expressed concerns about SOL’s future performance. Analyst Income Sharks identified a bearish Head and Shoulders pattern that could indicate a trend reversal for Solana.
On Sunday night, SOL fell below the $230 mark, reaching its lowest price since November 15 and breaking below a critical support level. This decline may lead to a retracement of approximately 10%, testing support between $200-$210.
Analyst CRG suggested a retest of these levels is possible before any recovery occurs.
SOL Sees Historic November Close
Despite recent declines, many analysts believe SOL's upward trend is not finished. Crypto Jelle mentioned that Solana aims for a price range of $400-$600 following its breakout from an eight-month bullish pennant in November.
Rekt Capital highlighted that Solana achieved its highest monthly close ever in November, reinforcing optimism about reaching the $400 target as momentum persists.
Additionally, Solana shows a multi-year Cup & Handle pattern, indicating a potential rally to $400 after last month’s breakout. Currently, SOL reports a daily decline of 5.3% and weekly decline of 7.2%, but a monthly increase of 36.3%.
As of now, Solana is trading at $224, with a notable increase of 97% in daily trading volume.
