Solana (SOL) has made a remarkable recovery after facing significant setbacks during the FTX exchange bankruptcy. With a 195% year-to-date return, SOL has outperformed major cryptocurrencies like Bitcoin and Ethereum. Here’s why Solana could dominate in 2024 and beyond.
Why Solana Could Outperform Major Altcoins in 2024
1. Strong Price Momentum
SOL surged from $9.97 to nearly $30 in just 10 months, showcasing resilience despite market volatility. On October 21 alone, SOL gained 25%, overshadowing Chainlink’s 21% rise.
Key Drivers:
- Contrarian Investing: Retail investors avoid SOL due to FTX associations, creating undervaluation and upside potential.
- FTX Estate Staking: Instead of selling, FTX Estate staked $122M in SOL** and **$5M in ETH, strengthening Solana’s fundamentals.
- SOL/ETH Ratio Recovery: The ratio climbed to 0.06, matching levels from a year ago, signaling renewed institutional interest.
👉 Why Solana’s staking strategy matters
2. Institutional Confidence
CoinShares reported Solana as a "preferred altcoin" among institutional investors, with consistent inflows in 2022–2023.
3. Technical Breakout
SOL breached the $25.86 resistance**, indicating bullish strength. A pullback to **$24.43 could present a buying opportunity before a potential rally to $69.79.
Risks:
- A drop below $21.11** could invalidate the bullish trend, pushing SOL toward **$17.92.
FAQs About Solana (SOL)
Q1: Is Solana a good investment for 2024?
A: Yes, SOL’s strong fundamentals, institutional backing, and technical breakout suggest high growth potential.
Q2: How does FTX’s bankruptcy affect Solana?
A: FTX’s staking of SOL (instead of selling) has reduced immediate sell pressure, supporting price stability.
Q3: What’s Solana’s price target for 2024?
A: If bullish momentum continues, SOL could reach $69.79**; however, monitor key support levels like **$21.11.
Final Thoughts
Solana’s 2024 outlook remains bright due to:
- Institutional adoption
- Technical uptrend
- Undervalued status relative to Ethereum
👉 Explore Solana trading strategies
Disclaimer: This content is for informational purposes only and not financial advice. Cryptocurrency investments are high-risk; always conduct independent research.