Summary The recent fall in Solana pricing has sparked interest amongst those looking for a buying opportunity. Currently, long-term moving averages such as the 100 and 200-period suggest bullish directional bias. Recent data has shown a significant increase in Solana’s weekly decentralized trading volume, outperforming many other large-cap crypto coins. By Christian Norman Year-to-date, 2025 has proven to be an interesting time for the crypto market, with Solana being no exception. Enjoying a period of bullish momentum bookmarked by Trump’s win in the election, seen as the pro-crypto candidate of choice, Solana not only rose to an all-time high just shy of $300 but overtook Binance Coin (BNB) to become the fifth-largest coin by market capitalization globally. A chart showing the recent price action of SOLUSD. OANDA, 27/05/2024 Currently trading at 179.38, a ~39% discount from all-time highs made in mid-January, the recent fall in Solana pricing has sparked interest amongst those looking for a buying opportunity. Notwithstanding, this decline in value is not exclusive to Solana, with much of the crypto space feeling the full force of waning market risk appetite. With a meteoric rise in crypto value still fresh in the collective memory, the $1,000,000 question becomes whether this phenomenon will continue in 2025, or whether general market risk aversion will bode negatively for crypto— Solana included. A table showing the ten largest cryptocurrencies by market capitalization. CoinMarketCap, 05/27/2024. What’s next for Solana? SOLUSD: Technical analysis Moving averages: Currently, long-term moving averages such as the 100 and 200-period suggest bullish directional bias, with recent price action breaking above key levels of support. This suggests that Solana has found sustained buyer pressure in the medium to long-term, and should remain in a general uptrend should current momentum continue. Oscillators lean neutral to sell : Many of the most commonly used trading indicators currently lean towards either a neutral or bearish bias. The Relative Strength Index ((RSI)) and Stochastics currently or recently have Solana as ‘overbought.’ At the same time, the MACD shows a weakening bull trend, with the distance between the MACD and signal line narrowing. Increased US rate cut bets are also benefiting silver pricing, with markets increasingly anticipating two interest rate cuts in 2025 Key levels : At the time of writing, Solana trades rangebound between ~$165 and ~$184. Historically, this is a range where bull trends are either made or broken. A sustained break above this level would suggest further bullish momentum, while the opposite could impose further downside from January’s highs. SOLUSD: Fundamental analysis Surge in DEX trading volume : Recent data has shown a significant increase in Solana’s weekly decentralized trading volume (DEX), outperforming many other large-cap crypto coins. This growth in volume suggests higher levels of user activity, liquidity, and growing utility for the Solana network, which is encouraging for Solana in the medium to long term. Crypto strategic reserve : A pledge by Donald Trump as part of his 2024 campaign, Solana is included in the US government’s “Digital Asset Stockpile”. Once a crypto-sceptic, Trump has not only overseen the creation of a United States crypto reserve but also released his project on the Solana blockchain - the now-infamous $TRUMP coin. Although some, including Solana’s co-founder, have reservations about governmental endorsement of crypto, the short-term effects on Solana pricing have historically been positive.
