Solana (SOL) price has crossed past the critical resistance level of $170, and this has sparked speculation about whether the top altcoin will spearhead the 2025 altcoin season. Solana’s gains coincide with a surge in the altcoin season index as most coins trail Bitcoin, whose rally past $103,000 has fueled bullish sentiment.
Solana Price Hits $170 as 2025 Altcoin Season Looms
Data from Blockchain Center shows that the altcoin season index has risen to 33, marking its highest level since late February. The rise coincides with a Solana price rally past $170, but it still needs to cross above 75 to confirm that an altcoin season has indeed started.
However, MN Capital founder Michael Van de Poppe notes that altcoins will likely extend gains, saying,
“The Altcoin market capitalization against Bitcoin is still massively bullish. The longest bullish divergence in history.”
As the altcoin season chatter heats up, several key indicators have emerged suggesting that the Solana price will likely be at the top of the leaderboard.
Key Indicators Hint Solana Will Lead Altcoin Season
Several indicators suggest that Solana price will likely outperform the broader market and lead the 2025 altcoin season. These indicators include:
- Solana meme coin frenzy
- Solana blockchain growth
- $109M looming short liquidations
- Bullish technical outlook
SOL Meme Coin Frenzy
One of the top reasons why Solana price may outpace other tokens ahead of the 2025 altcoin season is the ongoing SOL meme coin frenzy. As Coingape reported, Solana meme coins are outperforming the rest of the market, with their total value skyrocketing by 13% to $13 billion according to data from CoinGecko.
The frenzy towards these meme coins fuelled SOL’s rally to an all-time high in January. If history rhymes, this altcoin eyes massive gains in the near term and may outperform the rest of the market.
Solana Blockchain Growth
Data from DeFiLlama depicts a notable growth in Solana blockchain activity. The network’s DeFi TVL is surging and has reached $10.51 billion, marking its highest level in nearly three months. At the same time, the number of transactions and DEX volumes are sitting at multi-month highs.
As the Solana blockchain records significant growth, it is possible that the SOL price will also surge, and it might easily outperform the broader crypto market. If this happens, it may spearhead the next altcoin season.
$109M Shorts Risk Liquidations at $175 SOL Price
The Solana liquidation map shows that more than $109M in short positions are at risk of being liquidated if SOL price reaches $175. At press time, SOL trades at $171, which is only 2% away from this liquidation level. More short positions also risk being liquidated as SOL approaches the $180, and as the buy-side pressure from these liquidations surges, the altcoin may be on the verge of an explosive rally to the upside.
Solana Approaches Key Resistance Zone
The price of Solana is also approaching a key resistance zone, and if it can make a decisive close above it, it may fuel the next bull run that may push it to fresh highs and outperform the rest of the crypto market. A breakout above this zone will create the next bullish leg to $242, after which an all-time high above $300 may be reached.
The ADX line is rising, which indicates that the bullish momentum is gaining strength. Meanwhile, the RSI line on the daily chart is rising, and this indicates that the buying strength is strong enough to support a bullish Solana price prediction.
The combination of bullish technical indicators, an ongoing meme coin frenzy on the Solana blockchain, $109M possible short liquidations, and surging DeFi activity suggests it is likely for SOL price to outperform the broader crypto market. If this happens, Solana may lead the 2025 altcoin season.
The post Will Solana Price Lead the 2025 Altcoin Season? Key Indicators to Watch appeared first on CoinGape.