Solana Dips From Record High Even as Trump Tokens Drive Unprecedented Network Activity

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MARKETS TREND

Remarkably, Solana (SOL) has hit a new all-time high of $294 thanks to an amazing increase in network activity after the release of tokens bearing Trump-related themes.

Solana Dips From Record High Even as Trump Tokens Drive Unprecedented Network Activity
Solana price analysis

Since then, SOL/USD has consolidated under the $240 level, signifying a turning point for the blockchain platform as Layer-1 asset of choice among American investors.

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Solana Network Congestion and Infrastructure Challenges

Significant network congestion resulting from the release of Official Trump (Trump) and Official Melanie (MELANIA) tokens on the Solana network before Trump’s presidential inauguration has caused One of the biggest bitcoin exchanges in the US, Coinbase experienced before unheard-of delays in Solana transactions; some users had to wait up to 15 hours. The CEO of Coinbase Brian Armstrong noted the increase and said that although the firm β€œwas not anticipating this level of surge” and is now aggressively working on infrastructure expansion.

Solana has had 100% uptime over the past 90 days despite these difficulties, so improving network dependability from its last interruption on February 6, 2024.

SOL Price Performance Analysis

The surge in Solana’s popularity is evidenced by several key metrics:

  • A 48% price increase over the past week, outperforming both Bitcoin (+34%) and XRP (+18%)
  • Stablecoin trading volume on Solana increased by $3.13 billion in just one week
  • More than 200,000 new onchain users since the Trump token launch
  • SOL has become the most searched cryptocurrency among U.S. traders, according to Coingecko data

SOL/USD Technical Analysis

SOL/USD

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For Solana’s short-term price behavior, current market indications show a conflicting picture:

Bullish Factors

  • Trading above the Volume-Weighted Average Price (VWAP) at $252.55
  • Strong institutional interest driven by potential ETF approval
  • Continued momentum from Trump-related token activity
  • Sustained network activity and user growth

Bearish Signals

  • Rejection from the upper Donchian Channel at $295.83
  • 14% decline over two sessions suggests weakening buyer confidence
  • High trading volumes indicating potential market oversupply
  • Risk of β€œsell-the-news” activity following inauguration events

What’s Next for Solana Price?

There are potential and difficulties arising from the intersection of Trump’s presidency with Solana’s rising profile in the crypto scene. Although the platform has shown capacity to manage before unheard-of demand, the sustainability of present pricing levels is yet unknown.

The market seems to be pricing in potential benefits from Trump’s presidency, including probable friendlier rules for cryptocurrencies and ongoing Solana blockchain development of Trump-related digital assets. However, technical indicators suggest a potential near-term correction toward the $230-$232 range before any sustained move above $280.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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