Why is Solana price up today?

Solana’s price is up today as a mix of technical and fundamental reasons point to an optimistic prognosis for the SOL coin.

Solana’s price of $253.32 is rising in tandem with the cryptocurrency market, with Bitcoin trading above $105,000 at $104,970. According to data from Cointelegraph Markets Pro and TradingView, the price of SOL was $257, up more than 9% in the past 24 hours and 35% in the last seven days. Let’s look at the primary elements that are driving SOL’s price up today.

Increasing network activity backs SOL’s upside

The Solana network has seen a considerable increase in activity, indicating its expanding use and utility within the blockchain ecosystem.

This increase in activity results in more transactions being handled, improving the network’s efficiency and appeal to developers and users.  

This can be related to the recent hysteria over the Official TRUMP (TRUMP) and Official Melania Meme (MELANIA) on Solana, which caused the price to skyrocket on January 19.

According to the most recent Dune data, daily transactions on the Solana blockchain jumped from 45,881 on January 17 to Jan. 19 due to the meme-coin fever, indicating an overall revival in network activity.

Similarly, the total value locked (TVL) on Solana reached a record high of $12 billion on January 20, according to DefiLlama data. This valuation is at $11.8 million on Jan. 22, up 212% in the last seven days.

Buzz around spot Solana ETF approval

The expectation surrounding the prospective approval of a Solana ETF has considerably impacted its price.

Polymarket users expect a 92% possibility of approval in 2025, which has fuelled the current SOL price rise. An ETF certification will provide a regulated investment vehicle for regular investors, potentially expanding Solana’s exposure and credibility in the larger financial market.

JPMorgan analysts anticipate that a spot Solana ETF may generate $3 billion to $6 billion in capital inflows.

Depending on market conditions and the size of institutional inflows, this possible injection of capital could force SOL’s price significantly higher, into or beyond the $500-$750 level. 

Several prominent asset managers have applied for a Solana ETF, including VanEck, Greyscale, 21Shares, Bitwise, and Canary Capital.

Most recently, Bloomberg Senior ETF analyst James Seyffart released a list of current ETF files with the US Securities and Exchange Commission (SEC), including REX Shares’ spot Solana ETF filing.

According to fellow analyst Eric Balchunas, REX is more than simply another issuer; it is “rather an early pioneer in the industry, with decades of experience.”

The SEC is scheduled to issue preliminary decisions on these applications by the end of January. Greyscale’s submission has a deadline of January 23, while other applicants expect judgments by January 25. 

Solana price to $500?

Analysts and industry experts foresee a positive future for Solana, with major price hikes in the following weeks.

Pseudonymous trader Momin believes Solana will continue its “legacy,” claiming that calling out the Solana ecosystem last month when the price was below $200 was the “easier bet.”

“To be honest, I feel we see $500+ on $SOL this cycle!” Kolin, a fellow analyst, stated that the $500 price objective for SOL is “conservative,” claiming that “Solana’s just warming up” and that it will move considerably higher once “institutional money really starts flowing in.”

SOL’s technical setup suggests a rise to $500 and beyond, which aligns with Kolin’s views on the altcoin’s potential for growth. 

SOL price confirmed a bull fag chart pattern in early November 2024 by closing a crucial weekly candlestick above the flag’s upper border at $180.

Note that the price recovered from this level during the week ending January 13, indicating its relevance to bulls.

If the bulls maintain their momentum, the price is anticipated to rise toward the technical target of the current chart pattern at $580. The relative strength index of 62 indicates that the market is not overheated, implying that there is still room for greater upside. 

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