Why is Solana (SOL) price up today?
Solana price is up today, up 13% in the last 24 hours, as the crypto community continues to celebrate Donald Trump’s victory. Solana SOL $240.28 is one of the strongest cryptocurrency market performers in the last 24 hours, increasing 12% to more than $242 on November 17, its highest level in three years.
Solana’s price increase today can be linked to two major issues. First, VanEck’s statements on the likely approval of spot Solana exchange-traded funds (ETFs) in the United States have boosted investor confidence. Second, an increase in critical network indicators indicates increased demand for SOL tokens, which supports its upward momentum in addition to other catalysts.
Solana ETF in the US possible by 2025’s end: VanEck
Solana’s price rose following comments from Matthew Sigel, VanEck’s head of digital asset research, who indicated strong confidence in the approval of spot Solana ETFs in the US. On November 15, Sigel stated that the chances of a Solana ETF listing by the end of 2025 are “overwhelmingly high.”
He anticipates the US Securities and Exchange Commission (SEC) to license more cryptocurrency products, especially after Donald Trump’s recent crypto-friendly presidential election victory on November 5. According to Sigel, the anticipated regulatory approval for more cryptocurrency offerings, including a Solana ETF, may pave the way for institutional exposure to SOL. This confidence appears to have boosted investor demand.
Solana DEX metrics hit a new high
Solana’s price increase is being fuelled by excellent network fundamentals. According to DefiLlama data, Solana has the highest proportion of decentralised exchange (DEX) trade volume, accounting for 33.59% of market activity in November, considerably above Ethereum’s 17.54% share.Furthermore, Solana’s real economic value, as measured by transaction fees and MEV (maximum extractable value) tips, is at an all-time high, indicating improved network utilisation.Solana’s increasing adoption, network utilisation, and DEX volume domination are boosting investor sentiment and supporting SOL’s repricing relative to Ethereum, according to market analyst Aylo. “It’s currently ~29.5% of Ethereum’s market cap, and is continuing to be repriced,” he said. He additionally stated: “$SOL will be heading into price discovery soon.”
Massive short liquidations boost SOL price
Solana’s price increase today coincides with a significant short liquidation in the futures market. On November 17, the Solana Futures market saw $14.47 million in short liquidations, while long liquidations were only $3.6 million. When a trader shorts an asset, they are betting that the price will decline. However, if prices rise instead, they may be forced to buy back their investments in order to limit losses. SOL’s price increase caused many negative traders to buy back their positions, boosting the cryptocurrency’s positive mood.
Meanwhile, Solana’s open interest (OI) increased to a record high of $4.82 billion on November 17, about four times that of November 2021, when the cryptocurrency reached a high of roughly $260.
A high OI indicates a large number of active holdings in Solana futures, implying increased market speculation and liquidity. Meanwhile, positive financing rates imply that long-term traders pay a premium to keep their optimistic positions. These measures indicate a considerable desire to bet on Solana’s continued price increase.
Solana technicals hint at more upside
Technically, Solana’s recent price advances are part of a descending triangle breakout. A descending triangle, formed by a downward-sloping resistance line and a horizontal support level, usually denotes bearish mood. However, a break above the resistance level indicates a shift in market sentiment towards the bulls.
On the weekly chart, Solana decisively broke through its falling triangle barrier following Trump’s victory on November 6, with increased trade volumes confirming the strength of the upward surge.
SOL currently expects a protracted climb to the $267-270 range by the end of 2024, which would set a new record high. The breakout target is calculated by measuring the triangle’s maximum height and adding it to the breakout point.
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