Solana’s SOL token has increased over 20% against Ether over the last week, with a notable SOL/ETH ratio reaching 0.080, marking a record close. Traders are optimistic about a potential breakout towards $300, linking current patterns to Ethereum’s historic rise in 2021. However, decreased network fees and trading activity may pose challenges to achieving new all-time highs as SOL currently trades at $133, which is 54.5% below its peak.
In the past week, Solana’s SOL token has surged over 20% against Ether (ETH), with traders speculating on a breakout triggering a potential climb to $300, which would constitute a new all-time high. This growth is reflected in the increasing SOL/ETH trading ratio, which hit 0.080 on April 13, representing the highest weekly close recorded, as per Cointelegraph Markets Pro and Binance data.
The SOL/ETH trading pair has demonstrated consistent higher highs on the daily chart since April 4, indicating a prevailing uptrend. Over the last week, while Solana’s price increased by 35%, Ethereum only rose by 13%. Notably, trader Bitcoinsensus remarked on the historical significance of this performance, suggesting the Solana ecosystem could witness continued expansion.
In January, the SOL/ETH ratio peaked at 0.093 during a broader crypto market surge, correlating with significant price movements following US President Donald Trump’s inauguration, which saw SOL edging closer to the previous all-time high at $295. Current observations from trader BitBull hint at a similar breakout potential for SOL, drawing parallels between current trading patterns and previous patterns before Ethereum’s all-time highs in 2021.
Despite bullish sentiments, several on-chain metrics indicate possible challenges for SOL as it seeks to achieve new highs. Network fees for Solana fell by over 97% to $898,235 on April 14, contrasting sharply with trading activity registered on January 20, where fees reached $35.5 million. This decrease is indicative of lower trading volumes across major platforms, including Raydium and Orca.
Furthermore, daily decentralized exchange (DEX) volumes have dropped significantly, plummeting to $2.17 billion on April 14, a stark 93% decrease from the January 20 peak of $35.9 billion. As the market stands, Solana’s road to achieving new peak prices hinges upon a revival in network activity. Currently, SOL trades around $133, representing a 54.5% decline from its all-time record on January 19. This article does not constitute investment advice; readers should conduct their own research before making any investment decisions.
