Is Solana (SOL) Ready to Lead a New Altcoin Era?
The promise of the altcoin era has become an important focus point for cryptocurrency enthusiasts and investors as it heralds a major shift in the market. Technically, it marks the beginning of a huge capital shift from Bitcoin (BTC) to altcoins like Solana (SOL).
A well-known index currently indicates the beginning of the altcoin season, which can bring new opportunities for investors in the cryptocurrency market.
The beginning of the Altcoin season
The Altcoin Season Index recently rose to 76 out of 100. So this rise above the critical threshold of 75 marks the official start of the highly anticipated altcoin season.
Historically, an altcoin has been known to outperform 50 altcoins by 75% in 90 days. This event was last observed between late August and September 2022, marking a period of significant gains for various altcoins.
Read more: What is Altcoin Season? General guidance
The current market situation reflects these conditions with altcoins such as Ordi (ORDI), Sei (SEI), Injective (INJ), Solana (SOL) and more from BTC.
Solana's departure is particularly noteworthy. Known for its high transaction volume and low transaction costs, this blockchain-native token SOL has seen an impressive 6.7% price increase over the past week. It currently trades at $95.5.
This rise is underlined by a bullish pattern on the four-hour chart. According to BeenCrypto Global Head of News Ali Martinez, Solana has formed a bullish flag during this time frame, suggesting that a four-hour close above $106 is likely.
If SOL breaks this resistance, it could pave the way for a move higher towards the $150 zone.
“Solana [shows] A bullish flag developed on the 4-hour chart. A sustained 47% rally above $106 is likely to push SOL to the $150-$165 price range,” Martinez said.
Best Cryptos to watch out for
The broader context of this altcoin season also includes significant developments from other cryptocurrencies. ORDI and SEI, for example, have seen impressive gains of 2,067% and 558.5%, respectively, from their all-time highs since October 2023.
Ethereum (ETH) has increased its market dominance, currently 18% on CoinMarketCap and 17.2% on CoinGecko, Bitcoin 49.8% and 47.5%, respectively. This shift reflects interest in altcoins, challenging Bitcoin's long-standing dominance of the market.
Read more: 13 Best Altcoins to Invest in January 2024
The impact of the altcoin season is not limited to price movements. It is also a hot topic in social media and the business community. A great example of this is a trader who honestly traded MYRA and turned 3 SOL into 1,703 SOL in one day.
Such quick profit stories add to the love around altcoins, especially Solana.
Still, in the volatile cryptocurrency market, caution is always advised. The current trend indicates optimism for altcoins like Solana, but the market is unpredictable. Whether this momentum will continue and lead to new highs remains a topic 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 construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
