Solana Price Surges 10% as Trump’s Pro-Crypto Stance Sparks Market Optimism – $250 Target Set

Highlights:

• Solana is up 10% to $216, with $7B in trading volume.
• Trump’s pro-crypto plans spark market optimism.
• Investors expect a “crypto startup renaissance” under Trump.

The Solana price has surged 10% in the last 24 hours to trade at $216 as of 5 a.m. on a 44% pump in trading volume to $7 billion. This price jump comes at a time when Donald Trump is about to assume office, stirring fresh optimism in the cryptocurrency market. Among his promises to the crypto community is a US-based crypto strategic reserve anchored on such assets as Solana, USD Coin, and Ripple. Ripple’s XRP surged 400% after Trump’s previous election win.

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Trump declares, "We're going to do something great with #crypto."

This is BULLISH The first president that supports cryptocurrency will take office in 4 days. pic.twitter.com/kXIFxXasJN

— NFTPerks 🇵🇹 (@NftPerks) January 16, 2025

According to reports, Trump recently met with these digital assets’ founders and was sounded out on the idea of having an interest in it. While some say this could overshadow Bitcoin, many think it could result in a golden age for crypto, propelling prices and innovation.

The Trump administration is likely to reverse severe regulations set up by Biden that stifled the emergence of crypto startups. With key appointments like David Sacks as the AI and crypto czar, Trump paints himself as the pro-crypto leader. It is expected to unleash a wave of new crypto startups into the US, according to investors, who are predicting a “crypto startup renaissance.” Next month’s Crypto Ball event in Washington, sponsored by major industry players, reflects growing enthusiasm within the community.

SOL Statistics

• Solana price: $216
• Market Capitalization: $104 billion
• Trading Volume: $7 billion
• Circulating Supply: 480 million
• Total Supply: 590 million

SOL Breaks Above The Bearish Channel

The SOL/USDT price action on a 1-day timeframe presents some critical technical patterns and levels. SOL went into a parabolic rally in October, driving its price from around $80-$100 to a peak of almost $250 in early November, which was highly driven by strong bullish momentum.

While that remained the peak level, the consolidation started, marking a bearish descending channel over several weeks and hence showing lower high and lower low formations. This is typical during most corrective times, reflecting the typical price digestion after the gain goals were reached.

The $174 level showed strong support, wherein the price formed a double-bottom pattern in late December and early January. This is a classic bullish reversal pattern, indicating that the sellers were losing control near this critical zone.

Solana Price Could Rally to $250

The SOL broke above the bearish channel, potentially marking a trend reversal. The breakout was also associated with a rise above the 50-day and 200-day moving averages, currently at $174 and $208.98, respectively. These are dynamic supports that add to the bullish bias.

At the moment, SOL changes hands at $216.24, while the RSI stands at 58.93. The RSI indicates that the bullish momentum is building, though still below the overbought zone of 70, hence not overextended. Key levels to watch include immediate resistance at $225, which is in conjunction with the recent breakout zone.

If the price is above $208 and clears $225, it could rally toward $250, which is the previous high. However, failure to hold above $208 may lead to a retest of the $174 support. The setup looks favorable for a bullish continuation, but traders should remain cautious and monitor these critical levels for confirmation.

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