Solana
How Bitcoin Can Help Solana Reach a New ATH
- A correlation coefficient of 0.75 showed that Solana’s movements closely align with the price of Bitcoin.
- Negative sentiment around BTC and SOL could hamper immediate price gains.
by Solana [SOL] the price could be set for a new all-time high (ATH) according to Daniel Cheung, co-founder of Syncracy Capital. Cheung posted this on X (formerly Twitter).
According to him, Bitcoin [BTC] the return to bullish territory was the main reason why SOL might make this move. Explaining his bias, he note that,
“Return dispersion will continue, but we should start to see many new and old alts also creating new ATHs (i.e. $SOL, $AKT, $MKR, $TAO etc…)”
At press time, the price of Bitcoin was $67,164. This is an increase of 10.17% over the last seven days. The price of Solana, at the time of writing, was $173.35, representing an increase of 19.76% over the same period.
In March, BTC reached a new ATH before the halving. But before that, SOL outperformed the number one cryptocurrency. Despite this, SOL failed to reach a new ATH.
Solana’s all-time high was $260.06. This happened during the 2021 bull market. This cycle, the token’s price exceeded $200. But the bears ensured that SOL failed to reach its previous high.
Solana joins forces with the king
If SOL hits a new high with Bitcoin support him, the correlation between the two must be strong. AMBCrypto assessed this by looking at data obtained from Macroaxis.
At the time of writing these lines, the correlation coefficientt between Solana and Bitcoin was 0.75. The metric values range from -1 to +1.
If the reading is close to the negative zone, it means that the price is not moving in the same direction.
However, a positive reading close to +1 indicates a strong correlation. As such, Solana and Bitcoin appear to move together in most cases.
Source: Macroaxis
Red days still to come
During the week, it is predicted that BTC could revisit $70,000. If this is achieved, it means that the price of SOL could also exceed $200.
But to reach a new ATH, the SOL price must increase by more than 55%. Regarding the perception of the two cryptocurrencies, AMBCrypto observed that the weighted sentiment was negative.
According to Santiment dataBitcoin’s weighted sentiment was -1.333.
For Solana, it was -0.745, meaning the broader market was not convinced that SOL and BTC prices would continue to rise.
If sentiment remains negative, demand for SOL and BTC could fall. However, a change in sentiment could validate a price increase.
Source: Santiment
Realistic or not, here it is Market capitalization of SOL in BTC terms
But from the looks of it, Bitcoin may need to break above $73,750 for Solana to rise above $260.
Although it may not happen in a few weeks, SOL price could surpass its previous high before the end of the next quarter.