Solana Price Analysis
Indicators hint at Solana (SOL) potentially climbing to $334 initially. Throughout the past week, SOL’s price has been relatively static, hovering around $167.12. Despite this recent stagnation, the cryptocurrency has enjoyed a 52.63% increase Year-To-Date (YTD), though this is a far cry from its stellar performance in 2023.
Solana’s supporters remain bullish, with many forecasting that SOL could hit $500 by the end of this market cycle. Although there were expectations for SOL to exceed its previous high of $260 by the end of the first quarter of 2024, the closest it reached was $210 in March.
Correlation with Bitcoin
An on-chain analysis has highlighted a strong correlation between SOL and Bitcoin (BTC), with a coefficient of 0.83, indicating that their prices frequently move in tandem. In contrast, SOL’s correlation with Ethereum (ETH) stands at only 0.10, suggesting that their price movements are more independent. For SOL to reach its higher price targets, BTC would likely need to achieve new highs.
Social Dominance
Social dominance is another key metric. Solana’s social dominance, currently at 4.938%, is below its March levels, indicating a reduced level of discussion about SOL compared to other leading cryptocurrencies. Historically, low social dominance has often been a good buying opportunity, as it suggests the token is not currently in high demand.
Open Interest
The Open Interest (OI) for SOL, which measures the amount of money in related contracts, has fallen to $807.25 million, indicating a reduction in market liquidity. However, if OI were to exceed $2 billion again, SOL’s price could potentially double, reaching around $334.
