Solana Price Forecast: Why SOL Could Soon Test $250

Highlights:

• Solana is in consolidation after a strong rally off the $179.94 support
• Consolidation could be the calm before Trump’s inauguration on January 20
• Solana could rally to $250 or higher if Trump makes pro-crypto executive order

Solana (SOL) is in the red after the bulls failed to sustain momentum earlier in the day. At the time of going to press, Solana had dropped by 1% to trade at $186.08. Solana’s trading volumes are also down in the day. They currently stand at $2.48 billion, down by 46.07% in the day.

This mirrors a drop in volumes across the market. It is a reflection that Solana holders are sitting on the sidelines ahead of the upcoming Trump inauguration next week. It also shows the strong correlation between Solana and Bitcoin in the short term.

Technical Analysis – Solana Bears Rejected At Critical Support Level

From the charts, Solana is holding strong above the multi-week support at $179.94. If Solana sustains momentum off this support, then a rally to the $223.02 resistance could follow. A rally through the resistance could see Solana rally to $250 and high.

On the other hand, if Solana trading volumes remain low in the short term, then a consolidation between the $179.94 support and $223.02 resistance in the short term. Of the two scenarios, Solana is likely to continue consolidation with the potential for a breakout after the inauguration of Donald Trump on January 20.

Solana Price Correlation to Bitcoin a Bullish Signal

The inauguration of Donald Trump is quite important for Solana due to its price correlation to Bitcoin. News is already making headlines that Donald Trump could make an executive order reversing stifling crypto regulations on day 1. The expectation is that if Trump does this, it could push Bitcoin to new highs in the short term. This is also expected to trigger a rally for top altcoins like Solana.

Pro-Crypto Congressman Holds Solana

Solana’s prospects are also boosted by the fact that a pro-crypto congressman has disclosed that they hold Solana. It could be a hint as to the kind of potential Solana holds in the event the Trump presidency triggers a marketwide rally.

Congressman Guy Reschenthaler (R-PA) just bought bitcoin, xrp, and solana 👀 pic.twitter.com/FEcaOpIfK0

— CryptoBull 🛡️ (@CryptoBull69420) January 12, 2025

Solana ETFs Expected to Become Reality Soon

However, it is not just about the price correlation between Bitcoin and altcoins that gives Solana good prospects. The loosening of cryptocurrency regulations in the US could open the floodgates for new altcoin ETFs. Already, speculation is high that Solana and XRP ETFs could be in the works in the short term.

JP Morgan Analysts Bullish on Solana ETFs

According to analysts from JP Morgan, the launch of Solana and XRP ETFs could lead to an inflow of capital in the billions into these two cryptocurrencies. This could cause the value of Solana to hit new highs in the foreseeable future. In specifics, the JP Morgan analysts expect Solana to attract inflows of between $4 billion and $8 billion. 

SOL & XRP ETPs Could Attract $3-8bn Each: JPM

ETP assets ($108bn) make up 6% of the total Bitcoin market cap ($1,874bn) after the ETPs’ first year of trading; likewise, ether ETP assets ($12bn) have a 3% penetration rate of the total Ethereum market cap ($395bn) within its first… pic.twitter.com/7rApA2z71h

— matthew sigel, recovering CFA (@matthew_sigel) January 13, 2025

The potential for Solana and XRP ETFs to become a reality is enhanced by the fact that several top institutions have already filed their ETFs. Among them are VanEck, Bitwise, and Grayscale. According to Matthew Sigel of VanEck, Solana and XRP could draw in as much as $16 billion once they start trading.

Solana Remains a Top Platform for Launching Meme Coins

Besides being favored by the potential inflow of institutional money, Solana could be boosted by its standing as a top platform for launching meme coins. Like every other cycle, meme coins are expected to be a key market driver in this crypto cycle. This means that for the better part of 2025, Solana could sustain the high volumes it has generated from meme coins, which could help sustain price momentum in an all-out bull market.