Since August, SOL has faced consistent selling pressure whenever it approaches the $160 threshold. Its ability to break and hold above the $200 level is crucial to the recovery path.

Analysts previously predicted that overcoming these key resistance levels could push SOL towards a retest of its all-time high in the $250-$265 range.

Ethereum vs Solana

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This outperformance was likely driven by increased investor interest and momentum within the Solana coin meme community. In addition, Solana saw a faster expansion of the achieved cap compared to Bitcoin and Ethereum. By early December, SOL showed strong weekly capital inflow of over 5%.

Solana ETF Prospects

A growing number of firms, including VanEck, Grayscale, 21Shares, Bitwise and Canary Capital, are seeking approval for the Solana ETF. These Solana ETF spot applications are currently under review by the SEC, with initial decisions expected in late January 2025.

Grayscale's application faces a January 23 deadline, while the other four applicants expect to make preliminary decisions by January 25, 45 days after submitting their applications for review in November 2024. Despite strong demand for the Solana ETF, no approval has been granted yet , leaving 2024 without such a product.

Nate Geraci, head of The ETF Shop, expressed optimism about that timeline, in line with broader market expectations. Many industry participants believe that a potential change in US administration and SEC leadership could create a more favorable regulatory environment for cryptocurrency ETFs.

Polymarkets indicates a 77% probability that the Solana ETF will receive approval in 2025, adding to optimism among cryptocurrency investors. Many believe that approval of the Solana ETF could act as a significant catalyst for the price, with some arguing that this potential has not yet been fully factored into the current market price.

Notably, the US Securities and Exchange Commission (SEC) has not yet issued a formal denial of the 19b-4 filings filed by prominent firms such as Bitwise, Canary Capital, and 21Shares. As the current SEC Chairman's term comes to an end, market participants are optimistic that the regulatory environment will become more favorable.

How high can SOL price go in 2025?

In a recent analysis, cryptocurrency analyst Henrik Zeberg shared his bullish outlook on Solana (SOL), the fifth-largest cryptocurrency by market cap.

According to Zeberg, Solana is still consolidating after hitting all-time highs last month. This phase is normal near major market tops as the asset is gaining momentum for its next upward movement.

Zeberg noted that this consolidation is a healthy and necessary process for Solana. It allows the cryptocurrency to build the strength needed to rise. He believes this period of consolidation is a prelude to Solana continuing his upward trajectory.

According to Glassnode, Solana investors are showing strong conviction, with a growing proportion of long-term holders securing their wealth in the network. The 6-12 month group now controls 27% of the supply, indicating buyers' confidence during the 2024 rally and their expectation of higher prices ahead.

Solana's break above $200 has created an optimistic tone for 2025, but challenges remain as it approaches key resistance levels. The first important resistance lies at $219, in line with the 50-day simple moving average (SMA), followed by $246 and the all-time high at $264, which was last reached on November 23, 2024.

In contrast, potential support levels include $175 and the 200-day simple moving average, which could serve as a stabilization area if Solana faces a pullback. While the rally indicates strong momentum, overcoming these critical resistance points will be crucial for Solana's upward trajectory to continue.

A a report On September 25, VanEck released a forecast that Solana's price will rise significantly in the future, potentially reaching $330. This outlook is based on Solana's superior transaction speed and network efficiency compared to Ethereum. Last October, the price of SOL rose from $38 to $59.

Popular trader Peter Brandt recently shared his view on Solana price dynamics, emphasizing the concept of equal price fluctuations. Brandt explained that he uses swing targets as a tool to anticipate potential price movements in the markets.

In his analysis, Brandt shared a Solana chart that illustrates the symmetrical nature of price fluctuations. He has set his next target for Solana at $274, suggesting a potential new all-time high if that level is reached.

This forecast is consistent with the broader bullish sentiment surrounding Solana, driven by increased investor interest, strong network activity and potential catalysts such as expected Solana ETF approvals.