Solana Gains More Than Bitcoin as Trader Speculates an 'Extreme Move' Is Ahead

• Solana's native token SOL bounced above $100, erasing a price drop spurred by a recent network outage.
• SOL is coiling for its next impulsive move, one trader suggested.

Solana's SOL and Cardano's ADA led Thursday gains among major cryptocurrencies as bitcoin's {{BTC}} rally to four-week highs above $45,000 rejuvenated the crypto market.

SOL, the fifth-largest token by market capitalization, reclaimed the $100 level, erasing the price drop when the Solana network suffered an outage of five hours. It was recently changing hands at $102, up 5% over the past 24 hours. ADA rallied even more, posting a 7% advance during the same time.

They were the only cryptocurrencies in the broad-market CoinDesk 20 Index (CD20) that managed to outperform bitcoin's 3% daily advance. CD20, which tracks the performance of the largest crypto assets, was up 4%.

Widely followed pseudonymous crypto trader Wick suggested there could be further gains for SOL. Pointing to its recent price action, the token is in the process of forming a chart pattern similar to the one seen inOctober and December before big moves.

"Solana printing a shaded squeeze area," Wick said in an X post Thursday. "This usually warns up of an extreme move incoming."

$SOL

Solana printing a shaded squeeze area. This usually warns up of an extreme move incoming!

This is max pain move on Solana as everyone put on shorts while the chain was down. I tried to warn everyone to stay bullish 💯

LFG 🟢🟢🟢 pic.twitter.com/bFGS70GxVg

— Wick (@ZeroHedge_) February 8, 2024

While other major cryptocurrencies mostly lagged behind SOL and BTC, the outlook for the broader altcoin market looks bullish as late last year's frothy sentiment reset, Caleb Franzen, founder of Cubic Analytics, noted.

The total market capitalization of cryptocurrencies excluding BTC and ETH (TOTAL.3), a proxy for altcoins on TradingView, retested a key accumulation zone and now shows signs of bouncing off from oversold levels, Franzen explained.

"This seems like bullish price action," he said in an X post.

$TOTAL.3 broke above the accumulation zone, retested it, and is now showing signs of rebounding.

This seems like bullish price action... because it is!

The 30-day Williams%R Oscillator became oversold (briefly), proving the fact that sentiment in the altcoin universe was reset. pic.twitter.com/dosQb9mweb

— Caleb Franzen (@CalebFranzen) February 8, 2024