Solana (SOL), currently ranking as the fifth-largest cryptocurrency by market capitalization, has reversed its three-day downtrend, reigniting bullish expectations for short-term performance. A prominent crypto analyst anticipates SOL could exceed $300 if it regains a crucial price level.
Over the past week, Solana has exhibited notable strength, buoyed by U.S. President Donald Trump’s launch of the TRUMP memecoin on its network.
Following months of speculation and counterfeit launches, the official token was released last Friday, creating a surge in the crypto market. TRUMP achieved an all-time high of $75, reaching a market capitalization of $15 billion. Within this invigorated market environment, Solana experienced a 25% increase within 24 hours, reaching $270, and subsequently saw an additional 9.5% jump to a new all-time high of $295.83.
According to DeFiLlama data, Solana's Total Value Locked (TVL) surpassed its 2021 record of $10.02 billion, climbing to $12.1 billion on Sunday.
Analyst Rekt Capital highlighted the need for Solana to close the week above $250 and possibly retest this level to confirm its breakout from the re-accumulation range. However, the subsequent launch of another Trump-affiliated memecoin led to a 12% decline, closing the week at $241. The launch of First Lady Melania Trump’s memecoin, MELANIA, sparked controversy and spurred a market-wide correction of 6.6% within hours, causing Bitcoin to briefly fall below $100,000.
Despite the market correction, Solana maintained above its recent breakout levels, trading in a range from $230 to $270 over the last three days, though it struggled to consistently remain above $260.
On Wednesday, Solana's price increased by 10% to reach $264 before a slight pullback. Crypto analyst Jelle observed that the "SOL hourly chart appears poised for another attempt at $300 this month." The analyst remarked on Solana breaking out of its short-term downtrend post-Trump token launch, with technical indicators such as moving averages signaling bullish trends. Jelle also believes Solana is close to reclaiming its November highs, entering a potential "price discovery" phase similar to Bitcoin.
With Solana establishing previous highs against its Ethereum (ETH) trading pair as support, recapturing the $260 range could drive its price higher. Jelle asserted, "Reclaim $264, and all bets are off." Similarly, Nebraskangooner offered a positive view, highlighting Solana’s consolidation near all-time highs, suggesting potential for upward movement.
Analyst Byzantine General acknowledged possible resistance at open interest levels, yet remained optimistic about Solana’s prospects in the short term, stating it "looks pretty good." At present, Solana is trading at $255, reflecting a 2.5% increase within the daily timeframe.