Solana (SOL) price is up today, matching the upside moves elsewhere in the altcoin market as Bitcoin (BTC) price stagnates near $94,000.
SOL price up as Bitcoin dominance drops sharply
SOL’s price rose 6.35% in the past 24 hours to reach around $193.20. The gains coincided with Bitcoin’s crypto market dominance (BTC.D) recording its worst daily performance since January after falling 1.84% on Dec. 23.
SOL/USD four-hour price chart. Source: TradingView
The altcoin market cap (TOTAL2), on the whole, is up by around 4.5% on the day, while Bitcoin’s market cap has dipped by 1.75%. The capital outflow from Bitcoin to the altcoin market appears to have benefited Solana.
TOTAL2 versus BTC.D daily performance chart. Source: TradingView
Historically, such movements signal the start of an “altcoin season,” where major altcoins like Solana often outperform Bitcoin in dominance and price.
Market analyst Mister Crypto suggests Bitcoin’s dominance may decline further, citing BTC Dominance Index (BTC.D) data, which recently broke below a long-term ascending trendline. This pattern mirrors the 2021 market cycle, which triggered a major altcoin season.
BTC.D weekly performance chart. Source: Mister Crypto
In 2021, BTC.D broke down 31 bars (217 days) after Bitcoin’s halving, sparking a capital rotation into altcoins. A similar breakdown is occurring, 31 bars after the latest halving, suggesting the early stages of a new altcoin season, benefiting Solana and other cryptocurrencies today.
Increasing network activity backs SOL price rise
SOL’s price uptick on Dec. 24 follows an increase in onchain activity as more users engage with the network, contributing to the increasing momentum.
Related: Solana DApp revenue reaches $365M in November 2024, led by memecoins
Data from DefiLlama reveals the total value locked (TVL) on the Solana network has increased to 44.21 million SOL on Dec. 24, to the highest level since September 2023.
Solana’s TVL daily performance chart. Source: DefiLlama
On a year-to-date timeframe, Solana’s TVL increased 217% in 2024, suggesting that users and developers interact more with the network. The Solana network’s performance and ecosystem expansion is directly tied to the greater use of SOL, highlighting its growing adoption.
SOL eyes a modest 10% gains by 2025
Solana’s rise today appears after testing a support confluence comprising the 200-day exponential moving average (200-day EMA; the blue wave), an ascending trendline support, and a resistance-turned-support zone.
It also appears due to the daily relative strength index (RSI) almost dipping below the oversold threshold of 30, typically preceding a rebound or consolidation period.
SOL/USD daily price chart. Source: TradingView
SOL has bounced by nearly 10.50% after testing the confluence on Dec. 22, including the gains today. Solana’s daily RSI at 39 suggests room for further upward momentum.
That said, SOL/USD could rise toward the 50-day EMA (the red wave) at around $209.40 by December, up approximately 10% from the current price levels. The upside target aligns with a descending trendline resistance.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
