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Solana (SOL) has surged by 13% in the wake of Donald Trump’s recent victory, showcasing the growing optimism within the crypto community.
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The price of SOL has ascended from a low of $156 to a three-month high of $188, highlighting its impressive momentum amidst a broader market rally.
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According to Srigopal Bhattad, a crypto analyst, Solana’s recent trading above the long-term descending trendline at $187 signifies a potential bullish signal for the asset.
This article explores Solana’s recent price surge and its implications after the political shift led by Donald Trump’s election, highlighting key growth factors.
Solana’s Dramatic Price Movement Following Political Developments
On November 6, Solana’s price experienced a notable rise, reaching $186 after climbing 20.4% within a day. This movement aligns with the market’s reaction to Donald Trump’s presidential win, reflecting broader enthusiasm in the cryptocurrency sector.
Market Dynamics: SOL vs. Ether
The SOL/ETH ratio has marked a significant milestone, rising to 0.071, indicating a shift of investor focus from Ether to Solana. This figure represents a staggering 766% increase since the start of the year, with SOL outperforming ETH by over 70% during 2024. Analysts suggest this change is likely due to Solana’s lower transaction fees and the burgeoning interest in memecoins.
Growth in Solana’s Total Value Locked (TVL)
Solana’s ecosystem has registered a dramatic growth in its total value locked, which reached $6.54 billion recently, up from just $5.93 billion the previous day. This remarkable rise—amounting to over $650 million in a single day—stacks up against Ethereum and BNB Chain, underscoring Solana’s increasing popularity among developers and users.
The Resurgence of Solana-based Tokens
The recent rally of Solana’s native token is mirrored in several tokens on its blockchain, which have posted significant gains. Notably, Dogwifhat (WIF) surged over 15%, while other tokens like Bonk (BONK) and Popcat (POPCAT) witnessed gains of 18% and 20%, respectively. This positive performance in token prices contributes to the overall bullish sentiment surrounding SOL.
Technical Analysis and Future Outlook
As Solana continues to trade above the $180 support level, analysts remain cautiously optimistic. Bhattad points out that sustaining above this level could pave the way for Solana to challenge the next resistance levels between $200 and $220. However, he warns that a decline below the $180 mark could threaten this bullish pattern.
Conclusion
In conclusion, Solana’s impressive price surge, backed by rising TVL and robust interest in its ecosystem, paints a positive outlook for the asset. As political and market dynamics continue to shift, SOL investors should monitor key support levels and market trends closely for future opportunities.
