Is Solana ready to explode, the signals are green
Trump memecoin excitement and the potential for spot ETFs are driving Solana (SOL) to record highs. The cryptocurrency is witnessing impressive trading volumes on decentralized exchanges (DEXs) and has seen significant accumulation from institutional investors. This combination of factors is generating strong technical signals, suggesting a possible 25% increase in value.
Traders are expressing satisfaction with Solana's recent surge. The technical indicators for Solana (SOL) show promising signs of growth. Recent market analysis indicates that SOL is forming a symmetrical triangle pattern on a 4-hour chart, a structure that often leads to price breakouts. If the token manages to close above $270, it could aim for a price point of $330, representing a potential 25% gain.
The Relative Strength Index (RSI) stands at 54, which supports a positive view on the asset. This level indicates that Solana is not currently overbought or oversold, suggesting that there is still room for price appreciation.
Simultaneously, trading volumes on DEXs associated with Solana are reaching unprecedented levels. In the last month, total trading volumes reached $202.7 billion, surpassing those of Ethereum. This growth reflects an increasing interest in the Solana ecosystem.
Financial activity further confirms the enthusiasm surrounding Solana. In a span of just 24 hours, investors withdrew $40.6 million worth of SOL from exchanges. This significant accumulation by long-term holders strengthens the overall bullish sentiment towards the token.
The technical momentum of Solana is underpinned by strong fundamentals and increased network activity. According to data from Copper.co, the blockchain experienced a surge of 9 million new addresses added in just one day, spurred by the launch of the TRUMP memecoin, which has quickly reached a market cap of $12 billion.
Investor focus is also shifting towards potential Solana ETFs in the United States. Major institutional players like Grayscale, VanEck, 21Shares, Bitwise, and Canary Capital have submitted applications for these ETFs. A decision on the first applications is anticipated by the end of January 2025. These developments reflect growing interest among institutional investors, further driving capital into SOL.
Recent on-chain data from Coinglass supports this positive trend. The reported $40.6 million worth of SOL withdrawn from centralized exchanges in the past day indicates ongoing accumulation by long-term holders. This behavior is occurring alongside a 32% decline in trading volume, suggesting a consolidation period before a possible upward move.
The Solana ecosystem is well-positioned for significant growth, backed by increased adoption and solid fundamentals. The influx of retail investors, combined with the anticipation of spot ETFs, boosts SOL's outlook for reaching the $330 target.