Following several turbulent days, Solana (SOL) has emerged from a three-day downward trend, enhancing investors’ optimistic outlook for its short-term trajectory. A crypto analyst has indicated that SOL could be poised to exceed $300 shortly if a crucial level is restored.
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Solana Stays Strong Despite Fluctuations
Solana, the fifth-largest cryptocurrency by market cap, has notably excelled over the past week, spurred by the token launch initiated by US President Donald Trump.
Last Friday, President Trump unveiled his official memecoin, TRUMP, on the Solana network after months of rumors and fraudulent launches. The debut ignited a three-day crypto market excitement that drove TRUMP to a historic peak (ATH) of $75 and a market cap of $15 billion.
In the midst of the excitement, Solana surged 25% within 24 hours, reaching $270 before climbing another 9.5% to establish its new ATH of $295.83. Furthermore, Solana’s Total Value Locked (TVL) exceeded its 2021 record of $10.02 billion, reaching $12.1 billion on Sunday, as per DeFiLlama data.
Analyst Rekt Capital highlighted that Solana needed to secure a weekly close above $250, potentially followed by a retest to validate its breakout from the re-accumulation zone. However, the subsequent launch of another Trump-related memecoin caused SOL’s price to drop by 12%, concluding the week at $241.
On Sunday afternoon, First Lady Melania Trump introduced her official memecoin, MELANIA, via social media. The token faced significant backlash from the community, leading to a 6.6% correction in the crypto market within hours, with Bitcoin briefly dropping below $100,000.
In spite of the correction, SOL remained above the breakout levels attained over the weekend, fluctuating within the $230 to $270 price range in the last three days, although it struggled to maintain a position above $260 during most of this time.
SOL Gearing Up for a Leap to $300
On Wednesday, Solana’s price experienced a 10% increase to $264 before retracting. Crypto analyst Jelle noted that the “SOL hourly chart appears to be ready for another attempt at $300 this month.”
The analyst mentioned that the cryptocurrency had broken free from its three-day “Post-trump shitcoin launch downtrend,” while indicators such as moving averages had returned to a bullish stance. Furthermore, the post remarked that SOL’s recent performance was striving to reclaim the November highs.
According to Jelle, the cryptocurrency demonstrates bullish momentum and is “on the brink of entering price discovery” akin to BTC. He also mentioned that Solana has converted its previous high against its Ethereum (ETH) trading pair into support.
Consequently, recovering the $260 range could drive SOL’s price to new highs. “Reclaim $264, and all bets are off,” he remarked. In a similar vein, Nebraskangooner expressed an optimistic forecast for Solana, asserting that it is “consolidating right at all-time highs… no reason to believe this won’t continue to rise from here.”
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Analyst Byzantine General proposed there might be “a little more volatility since we are at OI resistance, but it may have already hit the bottom,” ultimately concluding that Solana “looks quite favorable” in the near term.
As this piece is being written, SOL is trading at $255, reflecting a 2.5% increase within the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
