Following Bitcoin’s recent surge, the overall sentiment in the cryptocurrency market has turned bullish. Numerous alternative coins (altcoins) have also experienced substantial gains in their prices. One standout performer has been Solana (SOL), which has achieved a significant milestone amidst this upward trend.
Given SOL’s recent accomplishment, there is speculation about the potential for a new altcoin season to emerge. This raises the question of whether such a scenario is feasible.
Solana’s Recent Milestone
Recent data indicates that Solana’s performance has been notably strong, with the altcoin seeing a price increase of over 20% in the past week, pushing its value above the $200 mark. At the time of reporting, Solana was trading at $201.
This surge in price enabled Solana to reach a new milestone, as highlighted by SolanaFloor, a prominent account sharing updates about the blockchain’s ecosystem. The market capitalization dominance of SOL reached an all-time high of 3.8% after surpassing $200, hinting at the potential for a forthcoming altcoin season.
Anticipating an Altcoin Season
In assessing whether Solana’s recent milestones and bullish momentum are indicative of an impending altcoin season, further analysis was conducted. The altcoin season index showed a slight increase, suggesting the likelihood of an upcoming surge in altcoin prices.
Despite this uptick, the index value currently stands at 37. Typically, a value close to 25 indicates a Bitcoin season, while a value near 75 signifies an altcoin season. Hence, investors may need to exercise patience before witnessing a significant altcoin rally.
Speculation suggests that an altcoin season may potentially be delayed until 2025. Nonetheless, investors are encouraged to remain optimistic. Notably, a decline in Bitcoin’s dominance percentage, which currently sits at 55.7%, indicates a favorable environment for altcoins like Solana to shine.
Furthermore, a closer look at SOL’s daily chart reveals a promising outlook. The moving average (MA) crossover indicator reflects a bullish trend, with the 9-day MA positioned above the 21-day MA.
However, it is essential to acknowledge the possibility of a price correction, considering that Solana’s Relative Strength Index (RSI) has entered the overbought zone. In the event of a correction, SOL could retrace towards its support level at $187.