Summary
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Solana (SOL) Outperforms Ethereum (ETH) with 20% Rally: Solana has significantly gained value against Ethereum, rising by 20% in the past week, leading to speculation about further price increases.
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Analyst Predicts Potential for Solana to Reach $300: Citing chart patterns similar to Ethereum’s 2021 breakout, a crypto analyst suggests Solana could surge to $300, potentially achieving new all-time highs.
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Decreased Network Activity Presents Challenges for Further Gains: Despite positive price momentum, on-chain metrics such as declining network fees and DEX volumes indicate a need for increased network activity to support a sustained rally towards new all-time highs for Solana.
Solana (SOL) has significantly strengthened against Ethereum (ETH), rallying by 20%, prompting analysts to consider whether a $300 price for SOL is achievable.
This upward movement follows a robust 30% increase in Solana’s value in US dollar terms over the preceding week, raising questions about the sustainability of further gains.
SOL/ETH Ratio Reaches Multi-Month Peak
On April 13, the trading ratio of SOL to ETH achieved a new multi-month high, as Solana demonstrated a 20% outperformance against Ethereum over the prior seven days.
One trader is now suggesting a potential bullish scenario that could see Solana reaching $300, a price point that would signify new record highs for the asset.
Data from Cointelegraph Markets Pro and Binance reveals that the SOL/ETH ratio climbed to 0.080 on April 13, marking its highest weekly closing value to date.
The SOL/ETH trading pair has been charting consecutively higher peaks on the daily chart since April 4th, indicating the establishment of an ongoing upward trend.
Solana’s Weekly Performance Exceeds Ethereum
This upward trajectory in the SOL/ETH pair coincides with a strong week for Solana individually, which saw its price jump by 35%.
In comparison, Ethereum’s price rose by a more modest 13% within the same seven-day period.
Pseudonymous trader Bitcoinsensus highlighted this dynamic in an April 14th post on X, stating that the “SOL/ETH chart has just flashed a sign of strength.”
Bitcoinsensus further commented, “Solana has closed its highest weekly close against Ethereum in history, reflecting that we could see continued outperformance of the Solana Ecosystem.”
Historically, the SOL/ETH ratio climbed to a peak of 0.093 in January, driven by a broader rally in cryptocurrency markets, coinciding with events such as the inauguration of US President Donald Trump.
During that period, Solana’s US dollar price briefly touched a record high of $295.
Analyst Predicts Potential $300 Solana Price in April
A prominent crypto trader known as BitBull shared an analysis using a CME futures chart on X, positing that Solana’s price might be poised for a breakout toward the $300 level next.
BitBull drew a parallel to Ethereum’s price behavior in 2021.
Ethereum, according to the analysis, underwent a period of price consolidation of around $2,000 on CME charts before initiating a surge to its all-time highs.
BitBull noted that “SOL is now showing a similar structure on the CME futures chart,” as it trades between $120 and $130.
This pattern, the trader suggests, could precede a comparable breakout for SOL, potentially pushing it beyond its previous all-time high of $300.
BitBull concluded, “Just like Ethereum’s run in 2021, Solana is setting up for a massive move in 2025.”
On-Chain Metrics Indicate Potential Obstacles to Price Target
Despite favorable technical chart patterns, several on-chain metrics suggest that Solana may encounter significant headwinds in its attempt to reach new all-time price levels.
Notably, Solana’s network transaction fees have drastically decreased, falling by over 97% to $898,235 on April 14 from a high of $35.5 million on January 20.
This substantial decrease in network fees aligns with a reduction in trading activity across decentralized exchanges (DEXs) like Raydium, Pump.fun, and Orca within the Solana ecosystem.
Conversely, transaction fees on other decentralized applications such as Jito, Moonshot.money, Meteora, and Photon have remained relatively stable since mid-February.
Similarly, daily DEX trading volumes on Solana have also seen a significant decline, dropping to $2.17 billion on April 14, which represents a 93% decrease from the $35.9 billion peak volume recorded on January 20.
These data points suggest that achieving new all-time highs for SOL may be challenging unless a substantial resurgence in network activity occurs to bolster the ecosystem’s fundamental strength.
As of recent data, Solana’s price has increased by 3% over the last 24 hours to $133, but it remains 54.5% below its record price set on January 19.
Also Read: Solana Rises 9% as Crypto Sentiment Improves
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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