Why did Solana (SOL) price increase today?
The price of Solana (SOL) rose today, matching the bullish movements in the altcoin market, while the price of Bitcoin (BTC) lingered around $94,000.
SOL's value has increased while Bitcoin's dominance has declined significantly.
The price of SOL increased by 6.35% in the last 24 hours to reach $193.20. It coincided with crypto market dominance Bitcoin's (BTC.D) posting its worst daily performance since January after falling 1.84% on Dec. 23.
SOL/USD four hour price chart. Source: TradingView
The altcoin market cap (TOTAL2) is up 4.5% overall on the day, while the Bitcoin market cap is down 1.75%. The capital outflow from Bitcoin to the altcoin market appears to have benefited Solana.
TOTAL2 vs. BTC.D Daily Performance Chart. Source: TradingView
Historically, such moves mark the start of the “altcoin season,” where major altcoins like Solana surpass bitcoin in dominance and value.
Market analyst Mr. Crypto suggests that Bitcoin's dominance may decline further, citing data from the BTC Dominance Index (BTC.D), which recently broke below a long-term uptrend. This pattern mirrors the 2021 market cycle, which triggered a major altcoin season.
BTC.D Weekly Performance Chart. Source: Mr. Crypto
In the year In 2021, BTC.D broke 31 bars (217 days) after Bitcoin halved, creating a capital shift to altcoins. A similar breakdown is occurring, 31 bars after the last half, indicating the early stages of a new altcoin phase, benefiting Solana and other cryptocurrencies today.
The increase in network activity supports the increase in the value of SOL
SOL's price increase on December 24th follows an increase in onchain activity as more users engage with the network, contributing to its increasing momentum.
Related: Solana Dapp Revenue Reaches $365M in November 2024, Led by Memecoins
According to data from Defillama, the total value locked (TVL) on the Solana network rose to 44.21 million SOL on December 24, the highest level since September 2023.
Solana TVL Daily Performance Chart. Source: Defillama
On a year-to-date timeframe, Solana's TVL increased 217% in 2024, suggesting that users and developers are increasingly interacting with the network. Solana's network performance and ecosystem expansion is directly related to SOL usage, reflecting its growing adoption.
SOL in 2010 It shows a modest 10% profit in 2025
Solana's rise appears after testing a support confluence that includes the 200-day moving average (200-day EMA; the blue wave), rising trendline support, and a resistance-reversal support zone.
It is also seen when the daily relative strength index (RSI) is about to drop below the oversold threshold above 30, especially before a recovery or consolidation period.
SOL/USD Daily Price Chart. Source: TradingView
SOL is up 10.50% including today's results since testing the merger on December 22nd. Solana's daily RSI at 39 points to room for further upside momentum.
That said, SOL/USD could rise to the 50-day EMA (red wave) around December 209.40, which is roughly 10% above current price levels. The upside target matches the resistance of the descending trend line.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
