Will Solana Price Reclaim $200 With Altseason Around the Corner?

• Trader Tardigrade predicts that Altseason could come in January 2025.
• Solana’s price has fallen below the $200 mark and is poised for a bounce.

Solana (SOL) crypto has been facing pullbacks and has dropped more than 7% in a week. Amidst the decline, the Solana price fell below the $200 crucial support and revisited the 100-day Exponential Moving Average (EMA).

Despite the recent price drawdown, technical indicators show signs of easing selling pressure. However, bears still dominate the market.

At press time, the Solana crypto price traded at $185.28, noting an intraday decline of over 1.02%. Furthermore, the market cap dropped to $88.84 Billion, ranking 6th among the top crypto coins.

Solana’s On-Chain Metrics Outlook

Data from Artemis showed that Solana‘s daily active addresses had noted a rise of over 2% to 5.5 million. That showcased increased user activity on the network.

Moreover, the Solana crypto daily transaction count in the past three days noted an uptick of over 8%. This replicated that renewed demand for the asset, which could, in turn, trigger a rebound soon.

However, the Total Value Locked (TVL) shows a minor decline, falling to $8.258 Billion. This signaled a dwindling user base and reduced on-chain activity.

Solana’s Performance Exceeds Bitcoin and Ethereum: Here’s Why

Since December 2022, Solana’s realized capital change has been impressive. It notably outpaced both Bitcoin (BTC) and Ethereum (ETH).

This period marked SOL as an increasingly significant player within the blockchain ecosystem. Out of 728 trading days, SOL outperformed the index on 389 days.

SOL’s realized cap change fluctuations were incredibly steep in mid-2024. This is where the performance curve of SOL sharply outperformed that of BTC and ETH.

This increase accompanied the upward movement in the Solana price. That confirmed confidence and a high inflow of capital in the market.

Furthermore, this information reflected the overall market. SOL’s concentrations were closely correlated with its growth phases and aggressive expansion.

This month, SOL achieved a significant spike in its price alongside the growth in its realized cap, reaching new heights. This pattern centered on the change in capital inflow on market valuation.

The realized caps of BTC and ETH reflected a modest increase during the same period. That shows they are also progressing, though not at the same rate as Solana.

Could AltSeason Kick Off this January?

If it crosses $205, the Solana price can be the start of the next altseason from January 2025. Analyzing historical trends within the Total 2 (TOTAL2) index revealed this prospect.

For instance, in 2020, Total2 entered the consolidation phase from August to October. Then, it entered into a contracting triangle pattern, and a breakout occurred in November of both years.

December 2020 and December 2024 saw the breakout phase. A small resting phase followed that before another breakout phase with highly contagious occurrences.

The first five months of 2021 witnessed explosive gains for altcoins. Moreover, a similar pattern may repeat in 2025, going by these trends. If this pattern holds, Total2 suggests an altseason in early 2025 could mirror a massive rally.

Moreover, the price action hints that the Solana price took support around the $180 level and primed for a rebound. Furthermore, the futures market data favored the rebound toward the $200 mark. Open Interest (OI) showed a rise of over 1.20%, witnessing a surge in long contracts.

The immediate support zones for the Solana crypto were $180 and $172. At the same time, the upside hurdles were $192 and $200.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.