Solana jumped 27% to reach $178 after Trump announced its inclusion in the US Strategic Crypto Reserve. But is this uptrend sustainable or will February woes pull it back below $150?
Solana joined Bitcoin and three other top cryptos in taking a shot at recovery after weeks of slow bleeding and loss of investor confidence in the digital asset. It rallied by more than 27% in the last 24 hours, from yesterday’s lows of $140 to the intraday high of $178, adding a record $37 to its price in less than two hours.
The Trump Effect
Much of the coin’s price action was driven by President Trump’s announcement that Solana would be one of five coins he would like added to the US Strategic Crypto Reserve. The rest are Cardano, Ripple, Ethereum, and Bitcoin.
The announcement made on Trump’s Truth Social platform renewed investor confidence in the crypto market and helped cushion top altcoins like Solana from further value loss.
It is worth noting that Solana has been under massive sell pressure which saw it shed as much as 40% of its value in February alone. A combination of factors, from the Libra scandal to broader crypto market correction, heavy sell-offs by Solana whales, and the anticipated SOL token unlocks, have all been dragging Solana prices down.
Some analysts have also opined that the many memes on the Solana ecosystem have also sucked liquidity from the top altcoin.
Can Solana Sustain This Uptrend?
From a technical perspective, Solana has hinted at a possible rebound – at least in the short term. For example, on the SOL/USDT daily chart, the MACD lines converged with the blue MACD line crossing the signal line from below.
And even though they are still in negative territory, the trend has reversed and is on an uptrend. The RSI has also improved from last week’s lows of 24 to settle the neutral territory of 46. Both signify a growing bullish momentum.
Several other factors, both on-chain and macro are also expected to help sustain this uptrend and at the very least cushion the coin from further hemorrhage.
First in the rumor that Pump.Fun – one of the most successful projects on the Solana ecosystem was testing its own Automated Market Maker (AMM).
The upcoming crypto summit and possible Solana ETF approval are also expected to stoke up investor interest in Solana.
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