Solana, Will It Be the Biggest Beneficiary of Altcoin Season…Possibility of Breaking $100?

▲ Solana (SOL)/ChatGPT generated image ©

Solana (SOL) is showing much stronger upward momentum than Bitcoin, once again raising expectations for an altcoin season. With Bitcoin's market share declining and capital rotation occurring simultaneously, market funds are moving towards high-volatility altcoins like Solana.

According to CoinMarketCap, a cryptocurrency market data aggregator, as of May 8 (local time), Solana recorded a 4.54% increase over 24 hours, reaching $92.08. During the same period, Bitcoin rose by only 0.30% and the overall cryptocurrency market by 0.73%, indicating Solana's relatively strong performance.

The media pointed to 'altcoin rotation' as the key background for this surge. CoinMarketCap's Altcoin Season Index rose by 2.38% over 24 hours and 10.26% over the past 7 days. In contrast, Bitcoin dominance fell from 60.44% to 60.06%. This is interpreted to mean that market funds are shifting from Bitcoin to altcoins.

Technical trends also supported bullish signals. Solana broke past the 127.2% Fibonacci extension level of $93.19, and the Moving Average Convergence Divergence (MACD) histogram maintained a positive value of 0.41. The 7-day Relative Strength Index (RSI) rose to 68.65, nearing the overbought zone, but analysis suggested there was still room for further upside. Trading volume also remained at around $4.62 billion, indicating the potential for institutional capital inflow.

In the short term, the market is focusing on whether the $90 support level will be maintained. The media predicted that if Solana settles above $90 and the 23.6% Fibonacci retracement level of $88.48, the likelihood of testing the next resistance, the 161.8% Fibonacci extension level of $96.39, will increase. Conversely, if it falls below $88.48, the possibility of a short-term correction could expand.

CoinMarketCap analyzed that Solana's current rise is based on a broader market preference for altcoins rather than specific positive news. Accordingly, whether the downward trend in Bitcoin dominance continues has been identified as a key variable determining the sustainability of Solana's upward trend.

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