Highlights:
- Solana is currently trading at the $158.54 support
- If support holds, and bulls take control, $200 could be the next target
- How the US election plays out could determine the short-term trajectory
Solana, like the rest of the market, is in a state of indecision today. At the time of going to press, Solana was up down by a negligible 0.47% to trade at $163.34. This is an indicator that investors are taking a cautious approach ahead of the upcoming US general elections that are scheduled for tomorrow, November 5.
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Technical Analysis – Solana Price Trading at Key Support Level
From the charts, Solana is closely mirroring Bitcoin’s price action, pretty much like most large-cap cryptocurrencies today. It is trading at a key support level. Solana is currently trading around the $158.54 support level, though bears appear weak and unlikely to push through this resistance. This is an indicator that until the uncertainty around the US election clears up, Solana could continue trading between the $184.62 resistance and $158.54 support.
Depending on how the US election plays out, two scenarios could occur. The first is a potential bullish rally that could see Solana blast through the $184.62 resistance. In such a scenario, Solana could easily test prices above $200 in the short term.
The second scenario is where the outcome of the US election triggers a surge in bearish sentiment. In such a case, Solana price could crash through the $158.54 support. In such a case, then Solana could easily drop to around $136.44 in the short term.
Who is the Next president?
Like: Kamala Harris
RT: trump #USElection2024 pic.twitter.com/f7CCq6G5Cf— Star Blink (@StarBlinkSolana) November 4, 2024
The US Election Factor
The bullish scenario could play out if Donald Trump wins the election. That’s because he has been openly supportive of Bitcoin, and cryptocurrencies in general. As such, a win for him would be an open signal that there is no more regulatory uncertainty in the US for cryptocurrencies. Not only could this push Solana through the $184.62 resistance, but it could also easily rally through its 2021 all-time highs.
On the other hand, the market could see a potential rise in bearish sentiment if Kamala Harris wins. That’s because there could be a possible continuation of Joe Biden’s policies, which have made it hard for many crypto projects to thrive. That said, there is also a chance that a Harris win may not have that much big of an impact on crypto.
That’s because, through industry lobbying, Kamala Harris and the democratic party have recently shown a softer stance towards cryptocurrencies. This could mean that even if she wins, the broader cryptocurrency market could remain within the bullish cycle that usually happens every 4-years following Bitcoin’s halving. With this in context, there is a chance that no matter who wins, a rally to prices above $200 is in the cards.
Meme Coins Could Boost Solana’s Price
Solana also stands to benefit from the flood of meme coins that could hit the market in the event of a Trump win. Trump-related meme coins have been some of the best performers this year so far. A flood of such meme coins could see Solana hit new highs due to the increase in the underlying demand for SOL.
TRUMP is coming to Solana
Ticker – $TRUMP
100,000.00 $TRUMP will be AIRDROPPED equally among first 500 wallets below, just interact and drop your SOL addresses.
Must be following with 🔔#Solana #airdropcoins pic.twitter.com/V9bd8w4ap5
— @TRUMP (@TRUMPTHECOINS) November 4, 2024
More Projects Porting to Solana
Solana also stands to benefit from the fact that more cryptocurrency projects even in areas like DeFi are increasingly porting away from Ethereum. Since many of these projects are choosing Solana, the underlying demand coupled with the pressure from meme coins could easily send Solana to new highs in the short term.
Social Media Hype Favors SOL
There is also the fact that hype around Solana is on the rise on social media. This could easily trigger FOMO around Solana, especially in a marketwide bull rally. All these dynamics make a strong case for the current Solana support at $158.54 to hold until after the US elections.
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