Solana Gains More Than Bitcoin as Trader Speculates an 'Extreme Move' Is Ahead

The broader altcoin market also showed signs of rebounding from oversold levels, one analyst noted.

AccessTimeIconFeb 8, 2024 at 9:31 p.m. UTC
Updated Feb 8, 2024 at 9:37 p.m. UTC
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  • Solana's native token SOL bounced above $100, erasing a price drop spurred by a recent network outage.
  • SOL is coiling for its next impulsive move, one trader suggested.

Solana's SOL and Cardano's ADA led Thursday gains among major cryptocurrencies as bitcoin's (BTC) rally to four-week highs above $45,000 rejuvenated the crypto market.

SOL, the fifth-largest token by market capitalization, reclaimed the $100 level, erasing the price drop when the Solana network suffered an outage of five hours. It was recently changing hands at $102, up 5% over the past 24 hours. ADA rallied even more, posting a 7% advance during the same time.

They were the only cryptocurrencies in the broad-market CoinDesk 20 Index (CD20) that managed to outperform bitcoin's 3% daily advance. CD20, which tracks the performance of the largest crypto assets, was up 4%.

Widely followed pseudonymous crypto trader Wick suggested there could be further gains for SOL. Pointing to its recent price action, the token is in the process of forming a chart pattern similar to the one seen inOctober and December before big moves.

"Solana printing a shaded squeeze area," Wick said in an X post Thursday. "This usually warns up of an extreme move incoming."

While other major cryptocurrencies mostly lagged behind SOL and BTC, the outlook for the broader altcoin market looks bullish as late last year's frothy sentiment reset, Caleb Franzen, founder of Cubic Analytics, noted.

The total market capitalization of cryptocurrencies excluding BTC and ETH (TOTAL.3), a proxy for altcoins on TradingView, retested a key accumulation zone and now shows signs of bouncing off from oversold levels, Franzen explained.

"This seems like bullish price action," he said in an X post.

Edited by Nick Baker.



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Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


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