The Solana (SOL) price has surged by over 14% in the last 24 hours, breaking above the $71 level. This impressive rally is driven by a combination of technical, fundamental, and sentiment-based factors that have captured the attention of investors and analysts alike.
Let’s explore the four key reasons behind Solana’s recent upward momentum.
Solana Price Follows Bitcoin’s Chart Pattern
Solana appears to be mirroring the recent price action of Bitcoin. Crypto analyst Jelle highlighted this similarity on social media, noting that in bull markets, simple chart patterns often regain their predictive power.
Bitcoin recently exhibited an ascending triangle formation—a bullish pattern characterized by a flat upper resistance line and a rising support trendline. This structure typically indicates accumulation by buyers and often precedes a breakout.
After consolidating below the $38,000 resistance level, Bitcoin broke out on December 1st and surged toward $44,000. Solana is now showing a nearly identical pattern, with resistance near $68 and a similar ascending support line from mid-November.
With SOL breaking above the $68 resistance, many analysts believe it could follow Bitcoin’s trajectory and continue climbing in the coming days.
Airdrop Season Attracts New Capital
The Solana ecosystem is currently experiencing what many are calling "airdrop season." Recent token distributions, such as the JITO airdrop, have generated significant excitement and rewarded active network participants.
More airdrops are anticipated from projects like Kamino Finance and others, creating a wave of optimism and attracting new users to the platform.
Airdrops historically have a positive effect on layer-1 tokens like SOL. New participants often need to acquire the native token to participate in ecosystem activities, increasing demand.
Chris Burniske, a partner at Placeholder VC, commented on the loyalty and wealth effects generated by community-focused airdrops within the Solana network. He noted that this trend is still in its early stages and is likely to continue driving engagement and investment.
👉 Explore more strategies for identifying promising airdrop opportunities
Continued Network Growth and Adoption
Solana’s fundamental metrics show strong growth, particularly in its decentralized finance (DeFi) sector. Key indicators highlight increasing activity and capital inflow:
- Net inflows from Ethereum to Solana via Wormhole exceeded 48 million in the last 30 days.
- Daily DEX volume surged from under 18 million in mid-October to over 466 million by November 10.
- The stablecoin market cap on Solana has grown by more than $100 million since October.
According to DeFiLlama, Solana’s total value locked (TVL) has increased by 117% over the past month, reaching over $840 million. This growth rate leads all major blockchain networks, indicating robust ecosystem expansion.
Endorsements From Influential Figures and Institutions
Positive sentiment from well-known investors and institutions has further bolstered confidence in Solana.
Arthur Hayes, co-founder of BitMEX, has publicly expressed optimism about SOL’s price potential. In a recent social media post, he questioned whether the token could reach $100, adding, “Tis the season for stinky fruit bitches. Can’t stop, won’t stop until SOL = $100.”
Financial giant VanEck also included Solana in its 2024 crypto predictions, forecasting that it could become a top-three blockchain by market capitalization, total value locked, and active users.
The firm suggested that Ethereum may lose market share to networks like Solana that offer clearer scalability roadmaps and improved user experiences—particularly in decentralized trading.
Frequently Asked Questions
What is an ascending triangle pattern?
An ascending triangle is a bullish chart formation where the price faces a horizontal resistance level but forms higher lows. A breakout above resistance often leads to a significant price increase.
How do airdrops benefit a blockchain like Solana?
Airdrops attract new users, increase network activity, and often require participants to hold or use the native token. This drives demand, liquidity, and overall ecosystem growth.
Why is total value locked (TVL) important?
TVL measures the total amount of assets deposited in a blockchain’s DeFi applications. Rising TVL indicates growing user trust, increased utility, and higher network valuation.
What did VanEck predict for Solana?
VanEck forecasted that Solana could become a top-three blockchain in 2024 by market cap, TVL, and active users, citing its scalability and improved trading experience.
Is now a good time to invest in Solana?
Market timing is always uncertain. While Solana shows strong momentum, investors should conduct their own research and consider their risk tolerance before making decisions.
What makes Solana different from other blockchains?
Solana is known for its high throughput and low transaction costs, making it attractive for DeFi and high-frequency applications. Its growing ecosystem and technical upgrades continue to draw developer interest.
At the time of writing, SOL was trading at $71.67, showing strength as it approached key Fibonacci resistance levels on the weekly chart.
The combination of technical breakouts, ecosystem incentives, fundamental growth, and institutional endorsement creates a optimistic outlook for Solana—though investors should remain aware of market volatility and conduct thorough due diligence.