Solana Outperforms ETH, BTC: What’s next for SOL Price?

1 month ago 30636

ARTICLE AD BOX

Solana price has been trending higher since September 6, gaining 25% and outperforming Bitcoin and Ethereum. SOL price has increased by 1.8% in the last 24 hours and is trading at $156. Solana did much better than BTC and ETH in Q3 2024, while Ethereum performed the worst of the three. Will SOL continue to post gains in Q4?

Solana Outperformed ETH & BTC in Q3

Solana outperformed Ethereum and Bitcoin in the quarter that ended yesterday. SOL price gained 6%, while Bitcoin price added 1.55%. Contrary to the others, however, the Ethereum price lost a whopping 23% in Q3.

Bitcoin price performed better than Ethereum owing to the well-performing spot ETFs. According to data from Soso Value, spot Bitcoin ETFs have had over $18 billion cumulative net inflow. On the last day of Q3, Bitcoin ETFs recorded $61.3 million daily net inflow.

On the flipside, spot Ethereum ETFs registered $523 million in net negative inflows, with September 30 recording $822,000 in outflows. The bad performance of the ETH ETFs may be the primary contributor to its bad price performance throughout Q3.

Why Solana Is Dominating the 2024 Bull Run

Solana has been a standout performer so far, and if the past is a predictor of the future, then SOL is poised to dominate the 2024 bull run. Here are some reasons why this could be the case:

Technical Strength: The Solana price chart has shown strong bullish indicators, even during the August 5 and September 6 market crashes. Currently, the SOL price action is forming a bullish pennant, which could propel the asset well over 100% if it breaks out.
Network Growth: The Solana network has registered one of the most exponential growths in the space aside from Sui, Tron, and Ton blockchains. This was mainly because of the meme coin season on the network, facilitated by low transaction fees and fast network speed. Efficiency in the
Strategic Partnerships and Innovative Ecosystem: Solana has formed strategic partnerships and collaborations that enhance its visibility and adoption. The most recent is Solana Pay, an open, free-to-use payment framework on the Solana network.

NEW: @solana DROPS PAYMENTS WITH @PayPal USD ON SOLANA DEMO WITH @phantom MOBILE AND @solanapay

pic.twitter.com/pF0KSSk0v3

— DEGEN NEWS (@DegenerateNews) May 29, 2024

Solana TVL has grown by 3.58% year-to-date (YTD), while Ethereum’s TVL has increased by 0.9% in the same duration. The growth in TVL corresponds to price, as SOL price also rose by 43% while ETH price increased by 12% YTD.

What to Expect from SOL Price in Q4?

Solana price chart shows a long-term upward trend following a significant correction. SOL price is forming a “Cup and Handle” pattern, a bullish continuation pattern.

The handle has been consolidating near the upper boundary of the cup, suggesting a potential breakout to the upside. A breakout above the resistance at $160 will serve as the confirmation trigger for a potential long-term price target of around $2,800 (based on the height of the cup).

The RSI shows a bearish divergence, making lower highs while the price moves higher, indicating a possible pullback or consolidation before a breakout occurs.

Solana price prediction shows the asset is poised to surge to new all-time highs. Short-term targets are $200, and long-term profit targets range from $350 to $500, with a potential extension toward $2,800 (as per the Cup and Handle pattern’s projection).

Frequently Asked Questions (FAQs)

Solana’s outperformance is attributed to its robust technical strength, exponential network growth, and strategic partnerships. While Bitcoin gained 1.55% in Q3 2024, and Ethereum lost 23%, Solana posted a 6% gain, driven by key factors such as lower transaction fees, fast network speed, and its innovative ecosystem, including Solana Pay.

Ethereum underperformed mainly due to negative net inflows in its spot ETFs, which saw $523 million in outflows during Q3, including a notable $822,000 on the last day of the quarter. The lack of demand in ETH ETFs is seen as a major reason for its price decline.

Based on current trends and technical indicators, Solana is poised to continue outperforming Bitcoin and Ethereum in Q4 2024, especially if the bullish Cup and Handle pattern plays out successfully. However, potential consolidation or a pullback could occur before this next rally.

Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Read Entire Article