Solana, set to 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 a rotation of funds, market capital appears to be moving towards high-volatility altcoins like Solana.

According to cryptocurrency market aggregator CoinMarketCap on May 8 (local time), Solana rose 4.54% over 24 hours to record $92.08. During the same period, Bitcoin only rose 0.30% and the overall cryptocurrency market rose 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 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 moving from Bitcoin to altcoins.

Technical trends also supported the bullish signal. Solana broke through the 127.2% Fibonacci extension level of $93.19, and the Moving Average Convergence Divergence (MACD) histogram remained in positive territory at 0.41. The 7-day Relative Strength Index (RSI) rose to 68.65, approaching the overbought zone, but analysis suggested there was still room for further upside. Trading volume also remained at around $4.62 billion, indicating the possibility of 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 level, the 161.8% Fibonacci extension at $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 surge is based on a broader market preference for altcoins rather than specific positive news. Accordingly, the continued decline in Bitcoin dominance has been identified as a key variable determining whether Solana's upward trend will continue in the future.

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