Key Points
- Solana’s price movements have a 0.75 correlation coefficient with Bitcoin’s price.
- Negative sentiment around Bitcoin and Solana could hinder immediate price gains.
Solana’s Potential New All-Time High
Daniel Cheung, the co-founder of Syncracy Capital, has suggested that Solana’s [SOL] price could reach a new All-Time High (ATH). This prediction was posted on X and was based on Bitcoin’s [BTC] return to bullish territory. Cheung believes that this could be a major factor in SOL’s potential move.
At the time of writing, Bitcoin’s price was $67,164, representing a 10.17% increase over the last seven days. Solana’s price was $173.35, a 19.76% increase within the same period.
Solana’s Performance Compared to Bitcoin
In March, BTC hit a new ATH before the halving. However, SOL had previously outperformed the number one cryptocurrency, but failed to hit a new ATH. Solana’s all-time high was $260.06, which occurred during the 2021 bull market. Despite climbing past $200 this cycle, SOL failed to reach its previous high due to bearish pressure.
The correlation coefficient between Solana and Bitcoin was 0.75 at the time of writing. A positive value close to +1 indicates a strong correlation, suggesting that Solana and Bitcoin often move together. Predictions for the coming week suggest that BTC could revisit $70,000. If this occurs, SOL’s price might also rise past $200.
However, to reach a new ATH, SOL’s price would need to increase by more than 55%. Current market sentiment around both cryptocurrencies is negative, which could potentially affect demand.
According to Santiment data, Bitcoin’s Weighted Sentiment was -1.333, and Solana’s was -0.745. If sentiment remains negative, demand for SOL and BTC could decrease. Conversely, a change in sentiment could validate a price increase.
For Solana to surpass $260, Bitcoin might need to exceed $73,750. While this may not occur in the next few weeks, SOL’s price could surpass its previous high by the end of the next quarter.
