- Solana’s price has been on a bullish trend since Trump’s win last week and analysts suggest that this momentum could continue, potentially pushing SOL’s price to $300.
- If the SEC ceases its classification of the SOL token as a security and approves Solana-based ETFs, the token could experience a significant rally.
Since Donald Trump’s victory in the 2024 U.S. presidential election, which paved the way for his return to the Oval Office, user activity on the Solana blockchain has surged, further establishing it as a favored platform for decentralized applications. This resurgence has contributed to a bullish trend in Solana’s price.
Over the last 30 days, SOL’s price has surged over 42% and is currently trading at $220.31 after a 17.35% surge in the week.
Experts believe that Solana’s price could soon reach the impressive milestone of $300. Here are five key reasons why this rally may unfold in the near future.
1. The Solana ‘God candle’
Solana appears to be on the verge of experiencing a significant price surge, referred to as a “God candle” event according to technical analysis by crypto trader Inmortal . This terminology describes a large bullish candlestick that can drive prices substantially higher in a short period. This surge aligns with the positive sentiment in the cryptocurrency market, which has experienced around $500 million in short-position liquidations.
Increased buying pressure from closing short positions boosted bullish sentiment, especially as Bitcoin reached a record high of $90,000. Solana is benefiting significantly from Bitcoin’s positive impact on the altcoin market. Technically, Solana’s RSI is around 65, indicating bullish momentum with room for growth.
Recently, SOL broke above the important $211 resistance level, which typically signals the start of a vertical ascent. If this momentum continues, Solana’s price could potentially reach $300.
2. Solana Outperforms Ethereum
Solana has surpassed Ethereum, the largest cryptocurrency by market capitalization on major economic indicators as of November 2024. In the past year, Solana provided investors with an impressive return of 188.42%, outperforming Ethereum, which delivered a return of just 39.03%. This performance is largely due to the increased activity on the Solana network, especially within the meme coins sector and decentralized applications. By the end of October, the Total Value Locked (TVL) in the network hit a two-year peak, exceeding 42 million SOL.
Additionally, insights from a survey conducted by MV Capital reveal that over 30% of venture and liquid capital allocators believe Solana will excel in the current market cycle, reflecting a growing trend of institutional adoption of Solana.
3. Regulatory Changes with Trump in the White House
At a conference this summer, Trump made a pledge: he promised to dismiss Gary Gensler, the SEC chair who is often seen as an adversary of the cryptocurrency sector.
Solana has found itself battling the SEC, and the lawsuit against Binance illustrates that the regulator is intensifying its scrutiny of SOL. In a revised complaint filed last month, the SEC made changes to eliminate the term “crypto asset securities” but retained and expanded its assertions that crypto exchanges broke the law by permitting customers to trade SOL.
However, these new commitments from Trump could alleviate some regulatory pressures, potentially enabling Solana to thrive in a more supportive environment.
4. Possible SEC Approval of Solana ETFs
Although the SEC approved ETFs for Bitcoin and Ethereum, Solana is encountering challenges. The agency has halted the approval process for Solana ETFs due to uncertainties regarding the classification of Solana as a security.
However, if a more crypto-friendly chair were to succeed Gary Gensler, the chances of these Solana ETFs gaining approval might increase. The introduction of such an ETF would make it easier for investors to purchase and hold Solana tokens, potentially attracting more capital and driving up prices to $300. Notably, other companies like Canary Capital, VanEck, and 21Shares have applied for a Solana ETF.
5. Robinhood Reintroduces Solana as Retail Interest Grows
On its Website, Robinhood revealed that it has broadened its offerings for U.S. customers by relisting Solana alongside Cardano (ADA), XRP, and Pepe (PEPE). This decision comes in response to customer dissatisfaction after SOL was removed earlier this year due to the SEC’s classification of it as a security.
By broadening its listings, Robinhood intends to reclaim its competitive advantage and fill the gaps in its cryptocurrency offerings. With Solana now available on a widely used platform like Robinhood, there is potential for increased engagement from users, which could lead to higher demand and, consequently, an increase in price.
