The Solana (SOL) price is trying to continue its modest comeback on Christmas Day 2024, and was last probing for a pushback above the $200 level.
It’s now up an impressive 13% from the multi-week lows it recently hit in the $175 area, but still has a long way to go before it retests its recent highs in the $260s.
Solana back to $200
Me and my buddies with a combined total of $17.50 in our wallet: pic.twitter.com/sbaDr7BhMk— Kakashi (@kkashi_yt) December 25, 2024
Indeed, the bulls shouldn’t get overly excited about the rebound just yet.
Chart analysis suggests the Solana price remains stuck in a downtrend and remains substantial in both its 21 and 50DMAs.
A meaningful break above $220 would be required to confirm an end to the bearish trend.
The Fed’s recent hawkish policy shift (towards signaling only two rate cuts in 2025) knocked confidence in risk assets last week.
Will that keep the Solana price in a bearish trend? Probably not. Here’s why a recovery back towards its 2024 highs and beyond is likely in early 2025.
Solana Price Set to Retest $260 Soon, Here’s Why
The Fed won’t be cutting interest rates as much in 2025, which is, on margin, a negative for risk assets.
But there are too many other fundamentals to be bullish on right now to get overly worried about this.
Firstly, the US economy continues to perform very well. Assuming that continues, this should underpin risk assets (like US stocks) moving forward, a tailwind for crypto.
But much more important for crypto is the imminent arrival of the pro-crypto Trump administration and a new pro-crypto US Congress.
The US crypto industry is on the cusp of entering into a new golden age, and this should be a boon for all major crypto assets as adoption accelerates.
With most major cryptos also still yet to enter the most explosive phase of their bull markets, the Solana price could soon enter lift-off.
And a break above the aforementioned downtrend could be the trigger.
The blockchain’s on-chain fundamentals are looking very healthy, with trading and transaction volumes and TVL in strong uptrends, per DeFi Llama.
Solana’s market cap was last around $94 billion, which is under 25% of Ethereum’s. Its unlikely to overtake Ethereum this cycle, given ETH will also likely see significant expansion.
But it wouldn’t be unreasonable to see the Solana price 4-5x from current levels and match Ethereum’s current market cap.
With the price still down 25% from its November peaks, Solana is a strong candidate for best crypto to buy now.
The post Solana Price Set to Explode Once It Breaks Above This Key Level appeared first on Cryptonews.
