Solana Price Stalls Below $200 Amid Bearish Market Trends
Bitcoin's price has dropped below $98K, and the total crypto market cap excluding Bitcoin and Ethereum is down to $950 billion, negatively impacting top altcoins. Solana's price trend reflects an intraday decline as it fails to surpass the $200 threshold, resulting in a range-bound movement.
Solana Price Analysis
The daily chart indicates a sideways trend for Solana (SOL) after failing to breach the psychological $200 mark, consolidating between support levels of $100 and $75. This shows a market indecision period.
The price is currently at $193.46, forming its third consecutive bearish candle on the 4-hour chart. A potential negative run is expected as the price falls below the 50-EMA and 20-EMA lines, along with increased selling pressure indicated by the 4-hour RSI dropping below the 50-EMA line.
2024: A Bullish Year for Solana
Despite short-term bearish sentiment, Solana has shown a year-to-date growth of 90.77% in 2024. Recent data indicates that both Bitcoin and Solana reached all-time highs in monthly trading volume last month.
⚡ LATEST: Bitcoin and Solana hit all-time highs in monthly trading volume last month. Meanwhile, Ethereum remains around 50% below its 2021 peak. pic.twitter.com/V4hwP1Pnhq
— Cointelegraph (@Cointelegraph) December 25, 2024
Solana's performance solidifies its market position amid these developments.
Solana Outpaces Ethereum in Social Mentions
In social media mentions, Solana has surpassed Ethereum over the past six months, recording 12.6 million mentions compared to Ethereum's 11.42 million. This reflects heightened community engagement and interest in Solana.
2024 was the year that Solana outpaced Ethereum in mentions across social media. Over the last 6 months, $SOL has seen 12.6M social mentions vs. $ETH with 11.42M.
— LunarCrush Social Intelligence (@LunarCrush) December 26, 2024
Surging DEX Activity on Solana
Decentralized exchange (DEX) activity on Solana has significantly increased, with November volumes reaching $129.7 billion—83.7% larger than Ethereum's $70.6 billion. This marks the second consecutive month surpassing the $100 billion mark in DEX volumes, indicating Solana's growing dominance in the DeFi sector.
Record-Breaking Total Value Locked (TVL)
The Total Value Locked (TVL) on Solana has reached an all-time high of $23.08 billion during 2024's recovery. Currently, the TVL stands at $21.136 billion with a 24-hour revenue of $1.35 million, demonstrating the network's resilience and rapid growth.
Solana Price Target
Considering current price trends, SOL may retest the $175 support level. A bullish market rally could enable Solana to break through the $200 mark, targeting prices of $220 and $250.
Conclusion
While SOL faces short-term bearish pressures, its substantial growth in 2024, increasing social mentions, rising DEX activity, and record-breaking TVL suggest a strong foundation for future performance. These elements project a bullish outlook for 2025, with Solana likely to maintain its position in the cryptocurrency market.