With BTC stagnant, Solana surges 6% – Time to add SOL to your portfolio?

• Solana might be gearing up for a strong finish to 2024, with a perfect storm of factors coming together to lay a solid foundation.
• Keep an eye on the market – opportunities are just around the corner.

Solana [SOL] has surged 6% in the past 24 hours, making a powerful comeback. With Bitcoin in consolidation, history shows investors often turn to high-cap tokens for bigger gains.

As the excitement of the new year heats up, could SOL be the next must-have asset in your portfolio?

A weekend no one saw coming

This weekend, Solana saw a surge of capital inflow, with the SOL/BTC pair turning green – an obvious sign of fund reallocation.

Investors are clearly flocking to SOL, as seen in its impressive 6% surge, pushing it back into the $195 — $200 range.

While it’s still a long way from its all-time high of $264, this rally could be the first step toward a strong Q1 rebound. 

For one, SOL is outpacing its rivals, creating the perfect environment for a FOMO-driven surge – one that’s catching the attention of both big and small players alike. 

Secondly, with Bitcoin’s recent ‘crash’ creating turbulence, altcoins like SOL could capitalize on the investor’s ‘high-risk’ mentality, tapping into the psychological dynamics of the market.

The hard data backs this up: SOL’s trading volume surged by an impressive 11.47%, reaching $4.90 billion, catching the bears off guard with $3.42 million in short liquidations.

Source: TradingView

If this momentum keeps up, Solana might just surprise us all, becoming the ‘underdog’ of this cycle. With the MACD lines just on the brink of turning bullish, the technicals are aligning to support this hypothesis.

Critical days lay ahead for Solana

Solana has the technical foundation to thrive in 2025, but some challenges could hold it back.

For investors, SOL’s potential hinges on its historical performance, on-chain data, and broader market trends.

While on-chain data looks bullish, SOL’s YTD growth of 82% falls short compared to XRP and BNB’s triple-digit gains.

With competition stiff among high-cap coins, SOL needs to keep the momentum strong to stay in the race. 

Although its trading volume is on the rise, it’s still in the single-digit range – historically, Solana has soared when trading volumes surpassed $10 billion. 

Right now, big investors are targeting ‘dips’ across the market, Solana needs to capture their attention or risk losing out. If Solana doesn’t make the cut, its on-chain metrics might not be enough to carry it forward.

 Read Solana’s [SOL] Price Prediction 2025-26

As we head into the new year, Bitcoin’s consolidation might persist, fueled by the U.S. economy’s debt challenges. In response, altcoins could be the focus for 2025.

With its recent strong performance, SOL seems like a solid pick for your portfolio. But, a few more days of market movements could offer a better entry point. Stay alert, this could be the beginning of something big.