Solana Dips From Record High Even as Trump Tokens Drive Unprecedented Network Activity
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.
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.
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 “was 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
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 “sell-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.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals