Summary:
Solana (SOL) stabilizes near $250, down 10% from its all-time high.
SOL overtakes XRP and Bitcoin as the most popular Layer-1 asset among US investors.
48% weekly surge in Solana's price, compared to 34% for BTC and 18% for XRP.
Market sentiment improves due to optimism over altcoin ETF approvals and Trump's memecoins.
Potential for price corrections as traders may take profits following recent gains.
Solana (SOL) has shown remarkable stability around the $250 support level, experiencing a 10% decline from its all-time high of $275 within the last 24 hours.
Solana's Rising Popularity
- SOL has surpassed XRP and Bitcoin to become the most sought-after Layer-1 asset among US investors, driven by increasing demand.
- Over the past week, Solana's price surged by 48%, while Bitcoin (BTC) and XRP gained 34% and 18%, respectively.
- The trading volume for Solana has risen steadily, indicating a potentially oversupplied market that could lead to volatility.
On-chain data suggests that speculation surrounding altcoin ETF approvals and Trump's memecoin launch has contributed to SOL's popularity. The question remains: will Solana's price climb above $300 or drop towards $200?
Solana's Search Interest Soars
Recent trends show that Solana is the top-searched cryptocurrency in the US, thanks to its significant market volatility since January.
- The upcoming Trump inauguration has sparked optimism for crypto-friendly policies, overshadowing concerns from the Federal Reserve's hawkish stance.
- Newly launched projects like the Official Trump coin and MAGA token have made Solana a focal point for investors, showcasing its growing prominence.
Market Sentiment and Future Outlook
- The market sentiment has improved significantly as optimism over altcoin ETF applications fuels bullish sentiment for Solana.
- Trump's use of Solana for his memecoins has further amplified interest, although traders are cautioned about potential profit-taking leading to corrections.
Price Forecast: Navigating Risks and Opportunities
- Currently, Solana is trading slightly above its VWAP at $252.55, reflecting active buying interest.
- However, the increasing trading volume signals an oversupplied market, indicating potential corrections ahead.
- If the demand from recent speculation wanes, SOL's price could drop to $230.
- On a positive note, if it breaks past $260, buyers may regain control, targeting $280 and beyond.
Despite recent gains, the bearish divergence in volume metrics could challenge Solana's upward momentum.
Solana Price Forecast | SOLUSDT
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