Why is Solana (SOL) worth up at present?

Solana (SOL) worth is up at present, matching the upside strikes elsewhere within the crypto market as Bitcoin (BTC) rises above $100,000.

Knowledge from Cointelegraph Markets Pro and TradingView reveals that SOL’s worth was $212, up greater than 5% within the final 24 hours and 12% during the last seven days.

Let’s have a look at the elements behind SOL’s bullish momentum at present.

Optimism returns to the crypto market

The cryptocurrency market as a complete has skilled constructive momentum in latest days, with Bitcoin and different main cryptocurrencies additionally exhibiting features. 

Bitcoin led the features, leaping as a lot as 5% from a low of $97,200 on Jan. 16 to an intraday excessive of $102,088 on Jan. 17. BTC worth is up 2% during the last 24 hours to commerce at $101,396 on the time of writing. 

This boosted market sentiment from Bitcoin has additionally led to a constructive influence on different cryptocurrencies.

As an illustration, different top-cap cryptocurrencies corresponding to XRP (XRP), BNB Chain’s BNB, Dogecoin (DOGE) and Cardano (ADA) are additionally flashing inexperienced, as proven within the determine under.

Equally, the overall crypto market cap has elevated by 2.2% during the last 24 hours to $3.57 trillion on the time of publication.

Broader financial elements and political occasions affect this normal constructive sentiment within the cryptocurrency market.

As an illustration, with the upcoming inauguration of US President-elect Donald Trump on Jan. 20, there’s growing optimism that this might result in a more friendly regulatory environment for cryptocurrencies, together with Solana.

Stories rising that Trump’s administration is contemplating a US-based crypto reserve, doubtlessly prioritizing cash like Solana and XRP.

🇺🇸 BREAKING: Trump considers US-based crypto reserve, doubtlessly prioritizing cash like Solana and $XRP. pic.twitter.com/Lwix7XGrHx

— Cointelegraph (@Cointelegraph) January 16, 2025

Optimism round attainable Solana ETF approval

There’s hypothesis across the potential approval of a Solana exchange-traded fund (ETF) in the US, which may drive important funding into SOL, just like what occurred with Bitcoin and Ethereum in 2024. 

The approval of US-based spot Bitcoin ETFs in January 2024 noticed the value of the crypto asset rise by 60% from round $46,000 on Jan. 10 to its March 14 all-time excessive at $73,794. Equally, the approval of spot Ethereum (ETFs) was preceded by a 40% rise in Ether’s worth. 

Analysts at JPMorgan have forecasted {that a} spot Solana ETF may appeal to between $3 billion and $6 billion in capital inflows.

This potential inflow of capital can propel SOL’s worth considerably greater towards or past the $500-$750 vary, relying on market circumstances and the dimensions of institutional inflows.

“Solana is one of the best play proper now,” DeFi researcher Jussy.Sol said in a put up on X. The important thing occasions to look at will probably be Trump’s inauguration on Jan. 20 and the primary deadline for a choice on approving a spot Solana ETF on Jan. 23.

“As soon as permitted, we may see a $50 – $100 one-day candle.”

Pseudonymous dealer Momin added that the approval of a spot SOL ETF over the following few days may ship its worth to “new highs.”

In the meantime, a number of main asset managers have submitted purposes for a Solana ETF, together with VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital.

Associated: Solana ETFs may take until 2026: Bloomberg Intelligence

The SEC is anticipated to make preliminary selections on these purposes earlier than the tip of January. Grayscale’s utility faces a deadline on Jan. 23, with different candidates anticipating selections by Jan. 25.

SOL worth prepared for all-time highs

Knowledge from Cointelegraph Markets Pro and TradingView reveals that SOL is now 24% under its all-time excessive of $264, reached on Nov. 23, 2024. Bulls have established assist round $200 and $208 on the 100-day and 50-day easy shifting averages (SMAs).

The day by day relative strength index (RSI) has recorded greater highs since Jan. 13 with no divergence, indicating that the upward momentum stays robust.

The following quick barrier sits at $220, which, if damaged, the following worth goal can be the all-time excessive of $264.

In line with standard analyst Cryptobits, SOL’s latest low at $169 reached on Jan. 13 marked the native backside for the altcoin. He added that Solana’s fundamentals stay robust in the long run and assist its upside.

“With backside in, $SOL seems to be to push additional greater. Stress ought to construct up on $220, $230 & $240 within the days forward.”

This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.