Why Is Solana Price Up Today? 4 Major Reasons

The Solana (SOL worth has risen by greater than 14% within the final 24 hours and is now buying and selling above $71. Listed here are the foremost causes for SOL’s newest worth rally.

#1 Solana Value Follows Bitcoin’s Chart Sample

The Solana worth is on the verge of mirroring the worth motion of Bitcoin (BTC) from final week. Crypto Analyst Jelle highlighted the similarities in a submit on X. He said, “In bull markets, the straightforward patterns abruptly begin working once more. Can SOL comply with in Bitcoin’s footsteps? […] Easy patterns nonetheless work. Let’s go!!”

$SOL

Easy patterns nonetheless work.

Let’s go!! https://t.co/YFHliFfkG1 pic.twitter.com/dddH2XB5du

— Jelle (@CryptoJelleNL) December 8, 2023

So, what’s the backstory? The Solana worth chart presently mirrors Bitcoin’s latest sample, exhibiting an ascending triangle formation. This bullish sample, characterised by a flat higher development line as resistance and an ascending decrease development line as help, suggests accumulation by patrons and potential for upward momentum.

Bitcoin demonstrated this sample with a resistance line round $38,000 and an ascending development line from early November lows. Final Friday, December 1, Bitcoin broke by means of the neckline which led to a surge to over $44,000.

Equally, Solana’s chart exhibits a resistance close to $68 and a comparable ascending development line from mid-November. With Solana breaking by means of the $68 resistance immediately, parallels are being drawn to Bitcoin’s rally, suggesting that the SOL worth might even transfer larger within the coming hours and days.

#2 Airdrop Seasons Attracts Traders

Airdrop season is coming to the Solana ecosystem. Whereas the JITO airdrop (Jito is a Solana-based liquid staking token protocol) made waves yesterday, new ones like Kamino Finance and Celestia (TIA) are already on the horizon. Airdrops traditionally have a really positive affect on the layer-1 coin as they appeal to new capital to the ecosystem, most necessitating the acquisition of the L1 coin like SOL.

Chris Burniske, companion at Placeholder VC, remarked, “Group-focused airdrops throughout the Solana group will induce great wealth & loyalty results, additional washing away the ashes because the phoenix rises. This development is barely simply gaining steam. […] Congrats to all JTO hodlers and Jito customers which have been rewarded – Jito and its friends are actively discussing learn how to pretty embrace & incent their communities, at scale.”

#3 Community Progress Continues

Solana’s DeFi sector is increasing quickly. Analyst Jay highlighted a number of key metrics: internet inflows from ETH to SOL by way of Wormhole surpassed 48 million within the final 30 days, DEX quantity surged from 17.69 million on October 14 to 466.44 million on November 10, and stablecoin market cap elevated by over 100 million since October 16.

DeFiLama data exhibits Solana’s TVL in DeFi purposes grew 117% within the final month to $840.99 million, rating sixth amongst all chains and main in share progress. Ethereum, regardless of main with a TVL of $29.77 billion, solely noticed a 46% improve.

#4 Endorsement By Arthur Hayes And VanEck

Arthur Hayes, BitMEX founder, has been bullish on SOL in latest days, predicting an increase to $100. He expressed this sentiment on X, stating, “Who is prepared for a weekend alt szn inexperienced doji piss up? Can we ship SOL over $100? Let’s do it fam.” In one other submit, he added: “Tis the season for pungent fruit bitches. Can’t cease, gained’t cease till SOL = $100.”

Remarkably, monetary big VanEck has additionally been extraordinarily bullish on Solana in its Bitcoin and crypto predictions for 2024. The agency predicts that Solana “will turn out to be a high 3 blockchain by market cap, Whole Worth Locked (TVL), and energetic customers.”

In keeping with the evaluation, “ETH will lose market share to different sensible contract platforms with much less uncertainty surrounding their scalability roadmap, comparable to Solana.” VanEck added that “decentralized trade (DEX) market share of spot crypto buying and selling will rise to an all-time excessive as high-throughput chains like Solana enhance the on-chain buying and selling expertise for customers.”

At press time, SOL traded at $71.67.