Why Is Solana Price Up Today? 4 Major Reasons

The Solana (SOL price has risen by more than 14% in the last 24 hours and is now trading above $71. Here are the major reasons for SOL’s latest price rally.

The Solana price is on the verge of mirroring the price action of Bitcoin (BTC) from last week. Crypto Analyst Jelle highlighted the similarities in a post on X. He stated, “In bull markets, the simple patterns suddenly start working again. Can SOL follow in Bitcoin’s footsteps? […] Simple patterns still work. Let’s go!!”

$SOL

Simple patterns still work.

Let's go!! https://t.co/YFHliFfkG1 pic.twitter.com/dddH2XB5du

— Jelle (@CryptoJelleNL) December 8, 2023

So, what’s the backstory? The Solana price chart currently mirrors Bitcoin’s recent pattern, exhibiting an ascending triangle formation. This bullish pattern, characterized by a flat upper trend line as resistance and an ascending lower trend line as support, suggests accumulation by buyers and potential for upward momentum.

Bitcoin demonstrated this pattern with a resistance line around $38,000 and an ascending trend line from early November lows. Last Friday, December 1, Bitcoin broke through the neckline which led to a surge to over $44,000.

Similarly, Solana’s chart shows a resistance near $68 and a comparable ascending trend line from mid-November. With Solana breaking through the $68 resistance today, parallels are being drawn to Bitcoin’s rally, suggesting that the SOL price could even move higher in the coming hours and days.

Airdrop season is coming to the Solana ecosystem. While the JITO airdrop (Jito is a Solana-based liquid staking token protocol) made waves yesterday, new ones like Kamino Finance and Celestia (TIA) are already on the horizon. Airdrops historically have a very positive impact on the layer-1 coin as they attract new capital to the ecosystem, most necessitating the purchase of the L1 coin like SOL.

Chris Burniske, partner at Placeholder VC, remarked, “Community-focused airdrops within the Solana community will induce tremendous wealth & loyalty effects, further washing away the ashes as the phoenix rises. This trend is only just gaining steam. […] Congrats to all JTO hodlers and Jito users that have been rewarded – Jito and its peers are actively discussing how to fairly include & incent their communities, at scale.”

Solana’s DeFi sector is expanding rapidly. Analyst Jay highlighted several key metrics: net inflows from ETH to SOL via Wormhole surpassed 48 million in the last 30 days, DEX volume surged from 17.69 million on October 14 to 466.44 million on November 10, and stablecoin market cap increased by over 100 million since October 16.

DeFiLama data shows Solana’s TVL in DeFi applications grew 117% in the last month to $840.99 million, ranking sixth among all chains and leading in percentage growth. Ethereum, despite leading with a TVL of $29.77 billion, only saw a 46% increase.

Arthur Hayes, BitMEX founder, has been bullish on SOL in recent days, predicting a rise to $100. He expressed this sentiment on X, stating, “Who is ready for a weekend alt szn green doji piss up? Can we send SOL over $100? Let’s do it fam.” In another post, he added: “Tis the season for stinky fruit bitches. Can’t stop, won’t stop until SOL = $100.”

Remarkably, financial giant VanEck has also been extremely bullish on Solana in its Bitcoin and crypto predictions for 2024. The firm predicts that Solana “will become a top 3 blockchain by market cap, Total Value Locked (TVL), and active users.”

According to the analysis, “ETH will lose market share to other smart contract platforms with less uncertainty surrounding their scalability roadmap, such as Solana.” VanEck added that “decentralized exchange (DEX) market share of spot crypto trading will rise to an all-time high as high-throughput chains like Solana improve the on-chain trading experience for users.”

At press time, SOL traded at $71.67.