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The Solana (SOL) price is attempting to sustain its modest recovery on Christmas Day 2024, and was last seeking to push past the $200 mark.
It has risen an impressive 13% from the recent multi-week lows around the $175 range, yet it still has a considerable distance to cover before revisiting its recent highs in the $260s.
Solana back to $200
Me and my friends with a total of $17.50 in our wallet: pic.twitter.com/sbaDr7BhMk— Kakashi (@kkashi_yt) December 25, 2024
Indeed, the bulls should refrain from becoming too enthusiastic about the rebound just yet.
Chart evaluations indicate that the Solana price remains entrenched in a downward trend and is still significantly below its 21 and 50DMAs.
A significant breakthrough above $220 would be necessary to validate an end to the bearish trend.
The recent hawkish policy shift from the Fed (indicating only two rate cuts in 2025) dampened confidence in risk assets last week.
Will this keep the Solana price in a bearish trajectory? Probably not. Here’s why a recovery towards its 2024 highs and beyond seems probable in early 2025.
Solana Price Set to Retest $260 Soon, Here’s Why
The Fed is unlikely to reduce interest rates significantly in 2025, which is, marginally, a negative for risk assets.
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However, there are numerous other fundamentals that currently support a bullish outlook, making excessive concern unwarranted.
First and foremost, the US economy continues to perform exceptionally well. If this trend persists, it should support risk assets (such as US stocks) moving forward, providing a tailwind for crypto.
More critically for crypto is the imminent emergence of the pro-crypto Trump administration alongside a new pro-crypto US Congress.
The US crypto sector is on the brink of entering a new golden era, which should benefit all significant crypto assets as adoption accelerates.
With most major cryptocurrencies still yet to experience the most explosive phase of their bull markets, the Solana price could soon take off.
A break above the previously mentioned downtrend could serve as the catalyst.
The blockchain’s on-chain fundamentals appear very robust, with trading and transaction volumes, as well as TVL, showing strong upward trends, according to DeFi Llama.
Solana’s market capitalization was last around $94 billion, representing less than 25% of Ethereum’s. It’s unlikely to surpass Ethereum this cycle, especially since ETH will likely also experience significant growth.
Nonetheless, it wouldn’t be unreasonable to envision the Solana price increasing 4-5 times from its current levels to match Ethereum’s existing market cap.
With the price still down 25% from its November highs, Solana remains a strong contender for the best cryptocurrency to buy now.
The post Solana Price Set to Explode Once It Breaks Above This Key Level appeared first on Cryptonews.
