Since the beginning of this year, the price of Solana (SOL) has risen by 117% and has surpassed its previous all-time high. However, investors are still not satisfied with this and expect Solana to record even higher gains in December.
Whether this wish will be realized depends on various factors. In this analysis, BeInCrypto examines some of these factors and the opinions of analysts on the potential of altcoins.
Solana's social dominance decreases... Analysts optimistic
The price rise of Solana has allowed it to maintain a relatively good level of social dominance this year. Social dominance is an indicator that compares the level of cryptocurrency mentions on the web to the top 100 assets.
An increase in social dominance indicates that discussion of the asset has become more active, while a decrease suggests that the market's focus has shifted to other cryptocurrencies. According to the cryptocurrency online data platform Santiment, Solana's social dominance is currently 6.09%, reflecting significant interest and active conversation about the asset.
This increase may be related to the price movement of SOL and the active meme coin activity on the blockchain. If it continues, the Solana forecast for December 2024 could be positive.
Regarding the outlook for SOL, Santiment's chief analyst, Brian Quinlivan, suggests that the declining sentiment in cryptocurrencies could significantly impact the performance in December.
Interestingly, Quinlivan views the traders' skepticism positively, stating that it could create an opportunity for a rebound. However, he emphasized that SOL's rebound ability depends on Bitcoin maintaining a minimum of $96,000.
"Traders have already shown a bit of disbelief last Thursday/Friday when the asset hit its all-time high. And now, with it retreating back below $240, the sentiment is in the bottom 10% range compared to the last 3 months' data. This should be seen as a good signal that it can rebound quickly if Bitcoin can stabilize and maintain the $94,000 to $96,000 range this week," Quinlivan told BeInCrypto.
If verified, this would also align with Raoul Pal's prediction. Pal has predicted that SOL could soon set a new all-time high. In addition to Pal, cryptocurrency analyst Rekt Capital also agrees that SOL could reach a new all-time high.
"Solana has performed a historic weekly close. SOL has closed the week above the key $250 resistance for the first time ever. If SOL can confirm $250 as new support, SOL will confirm a breakout to new all-time highs. A historic retest is underway," the analyst wrote on X five days ago.
SOL Price Prediction: Rising Wedge Pattern Formation... Will it Reach $300?
On the daily chart, the altcoin has formed a rising wedge, suggesting that the Solana forecast for December 2024 could hold even higher value.
A rising wedge is an upward-sloping chart pattern consisting of two rallies and a short correction phase. The pattern begins with a steep, almost vertical price surge, known as the "pole," which occurs when buyers overwhelm sellers.
This is followed by a retracement that forms parallel upper and lower trendlines, creating the "flag" or consolidation phase, signaling a temporary pause before the next upward move. With the technical pattern already in place, Solana's price could rise to $300 this month.
However, this may be difficult to achieve if Bitcoin price fails to maintain above $94,000. In that case, SOL could drop to $214.99.
