Is solana (SOL) Ready for the Next Step?
The promise of altcoin season has become a major focus for cryptocurrency enthusiasts and investors as it signals a significant shift in the market. Technically, this marks the beginning of a major capital rotation away from Bitcoin (BTC) and towards altcoins like Solana (SOL).
A well-known index is currently marking the beginning of an altcoin season that could bring new opportunities to investors in the cryptocurrency market.
Beginning of Altcoin Season
The Altcoin Season Index recently rose to 76 out of 100. Thus, it exceeded the critical threshold of 75. This rise signals the official start of the highly anticipated altcoin season.
Historically, the altcoin season is characterized by a period in which 75% of the top 50 altcoins outperform Bitcoin over 90 days. This phenomenon was last observed between late August and September 2022 and marks a period of significant gains for various altcoins.
Read more: What is Altcoin Season? A Comprehensive Guide
Altcoin Season Index Source: BlockchainCenter
The current market scenario reflects these conditions; Altcoins such as Ordi (ORDI), Sei (SEI), injective (INJ), Solana (SOL) and others are significantly outperforming BTC.
Solana’s rise is particularly notable. SOL, the native token of this blockchain known for its high yield and low transaction costs, showed a significant price increase of 6.7% last week. It is currently trading at $95.5.
This rise is emphasized by the bullish formation developing on the four-hour chart. According to Ali Martinez, BeInCrypto’s Global News Manager, Solana has formed a bull flag in this time frame, indicating a potential breakthrough if the four-hour close is above $106.
If SOL breaks this resistance, it could pave the way for an increase towards the $150 region.
Solana (SOL) Price Performance. Source: TradingView
Best Cryptos to Watch Out for
The broader context of this altcoin season includes significant performance by other cryptocurrencies as well. For example, ORDI and SEI achieved staggering gains of 2,067% and 558.5%, respectively.
Ethereum (ETH) has also increased its market dominance and currently holds an 18% share on CoinMarketCap and 17.2% on CoinGecko, compared to Bitcoin’s 49.8% and 47.5% respectively. This shift shows that interest in altcoins is increasing and challenging Bitcoin’s long-standing dominance in the market.
Read more: 13 Best Altcoins to Invest in January 2024
The impact of altcoin season is not limited to price movements. This is also a hot topic on social media and in the trading community. A striking example of this is a trader who cleverly traded Mytheria (MYRA), turning 3 SOL into 1,703 SOL in just one day.
Such quick gain stories are adding to the enthusiasm surrounding altcoins, especially Solana.
However, it is always advisable to be careful in the volatile cryptocurrency market. Although the current trend points to a bullish outlook for altcoins like Solana, the market appears to be unpredictable. Whether this momentum will continue and reach new highs remains the subject of intense interest and speculation in the cryptocurrency community.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy and Disclaimers have been updated.
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