Why did Solana (SOL) price increase today?
The price of Solana (SOL) rose today as Bitcoin (BTC) rose above $100,000, matching the bullish movements in the crypto market.
According to data from Cointelegraph Markets Pro and TradingView, the price of SOL was $212, up more than 5% in the last 24 hours and more than 12% in the last seven days.
BTC/USD Daily Chart. Source: Cointelegraph/TradingView
Let's look at the reasons behind the SOL bully movement today.
Optimism returns to the crypto market
The cryptocurrency market as a whole has shown positive momentum in recent days, with Bitcoin and other major cryptocurrencies also showing gains.
It jumped 5% from a low of $97,200 on January 16 to a high of $102,088 on January 17. The price of BTC has increased by 2% in the last 24 hours. writing.
This increased market sentiment from Bitcoin has had a positive impact on other cryptocurrencies as well.
For example, other high-cap cryptocurrencies such as XRP (XRP), BNB Chain's BNB, Dogecoin (DOGE) and Cardano (ADA) are glowing green as shown in the diagram below.
Performance of top-10 cryptocurrencies by market value. Source: CoinMarketCap
Similarly, the value of the overall crypto market increased by 2.2% in the last 24 hours to $3.57 trillion at the time of publication.
Broad economic conditions and political events influence this overall positive sentiment in the cryptocurrency market.
For example, with the upcoming inauguration of US President-elect Donald Trump on January 20th, hopes are rising that this will lead to a friendlier regulatory environment for cryptocurrencies, including Solana.
Reports are emerging that the Trump administration is considering a US-based crypto reserve, prioritizing coins like Solana and XRP.
🇺🇸 BREAKING: Trump looks at US-based crypto reserve, prioritizing coins like Solana and $XRP. pic.twitter.com/Lwix7XGrHx
— Cointelegraph (@Cointelegraph) January 16, 2025
Optimism around Solana ETF approval
In the year There is speculation surrounding the approval of Solana's exchange-traded fund (ETF) in 2024, which could invest heavily in SOL, similar to what happened with Bitcoin and Ethereum.
The adoption of US-based spot Bitcoin ETFs in January 2024 saw the crypto asset's price jump 60% from around $46,000 on January 10 to an all-time high of $73,794 on March 14. Similarly, the adoption of space ethereum (ETFs) has already seen a 40% increase in the price of ether.
Analysts at JPMorgan predict that the Solana ETF could attract somewhere between $3 billion and $6 billion in capital inflows.
This potential capital inflow could push the price of SOL higher into the $500-$750 range, depending on market conditions and institutional earnings volume.
“Solana is the best game right now,” said Defy researcher Jussi Sol in a post on X. Key events to watch will be Trump's inauguration on Jan. 20 and the first deadline for a decision to approve Solana's ETF position in January, he said. 23.
Once approved, we could see a $50-$100 one-day candle.
Spot SOL ETF's approval in the next few days is likely to send the price to a “new high”, added analyst Momin.
Source: Momin
Meanwhile, several major asset managers have filed for the Solana ETF, including VanEck, Grayscale, 21Shares, Bitwise and Canary Capital.
RELATED: Solana ETFs May Take Through 2026: Bloomberg Intelligence
The SEC is expected to make initial decisions on these applications before the end of January. Greyscale's application deadline is January 23, while other applicants await decisions on January 25.
SOL prices are at an all-time high.
According to data from Cointelegraph Markets Pro and TradingView, SOL is now 24% below $264, 2018. Accessed November 23, 2024. Bulls have established support around $200 and $208 at the 100-day and 50-day simple moves. moving averages (SMAs).
The daily Relative Strength Index (RSI) has hit new highs since January 13 without any divergence, indicating that the upward momentum is strong.
XRP/USD Daily Chart. Source: Cointelegraph/TradingView
The next immediate barrier is set at $220, if this is broken the next price target will be the all-time high of $264.
According to popular analyst Cryptobits, SOL's low of $169 on January 13 marked the altcoin's local low. He added that Solana's fundamentals remain strong in the long term and support the turnaround.
“Bottoms in, $L looks to push higher. Pressure should build at $220, $230 and $240 in the coming days.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
