Analytics

This is how Solana (SOL) performed in 2024 so far

Solana (SOL) was one of 2024’s top-performing cryptocurrencies, surging from $100 at the start of the year to $235 by early December—a staggering 135% gain.

In the last month alone, SOL added 19% to its value, driven by bullish sentiment across the market. Analysts are now setting their sights on a $420 target, underpinned by growing network activity, institutional adoption, and Bitcoin’s rally beyond $100,000.

However, regulatory challenges remain a hurdle, with ETF rejections casting a shadow over what has otherwise been a stellar year.

Regulatory hurdles for Solana ETFs

Despite its strong price performance, Solana has faced significant regulatory hurdles. The U.S. Securities and Exchange Commission (SEC) recently rejected applications for spot Solana ETFs filed by major players like VanEck, 21Shares, and Canary Capital.

Notably, crypto asset manager Grayscale also recently applied to convert its Solana Trust into a spot exchange-traded fund.

With President-elect Donald Trump appointing Paul Atkins, a pro-crypto policy expert, as the incoming SEC Chair, optimism is growing. Analysts expect the leadership transition in January 2024 to pave the way for broader ETF approvals, potentially benefiting Solana and other cryptocurrencies.

Recently, SOL decisively broke above a key resistance between $220 and $230 and retested it as a strong support zone, further solidifying its bullish momentum.

This breakout was accompanied by a significant surge in trading volume throughout November, indicating robust buying interest. The rally aligns with broader market optimism fueled by Bitcoin’s climb past $100,000 and growing institutional confidence in Solana’s expanding ecosystem.

Analysts project Solana’s next price target at $420, a level that seems attainable given its robust technical setup and favorable macroeconomic backdrop. However, any breach below the critical upward-sloping trendline could undermine the bullish momentum, prompting a potential retest of lower support levels and raising caution among traders.

If Solana maintains its momentum and benefits from improving regulatory clarity, it is well-positioned to achieve the $420 target, likely within the first quarter of 2025.

Featured image via Shutterstock

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