Why is Solana (SOL) price up today?

2 days ago 3

Solana’s (SOL) price is up today, matching the upside moves elsewhere in the crypto market as Bitcoin (BTC) rises above $96,000.

Data from Cointelegraph Markets Pro and TradingView shows that SOL’s price was $188, up more than 6% in the last 24 hours and recouping nearly all the losses incurred on Jan. 13.

Coinbase, Cryptocurrencies, DApps, Markets, Cryptocurrency Exchange, Market Analysis, Solana

Let’s look at the factors behind Solana’s bearishness today.

SOL price move mirrors marketwide recovery

SOL’s price rise on Jan. 14 mirrors the bullish sentiment in the market that has seen crypto prices recover across the board.

Bitcoin led the gains, jumping as much as 9% from four-week lows at $89,163 reached on Jan. 13 to an intraday high of $97,339 on Jan. 14. BTC price is up 5% over the last 24 hours to trade at $96,866 at the time of writing.

Ether (ETH), the largest altcoin by market capitalization, has risen more than 2.85% over the last 24 hours to trade above $3,200.

The largest gains among the top 10 largest cryptocurrencies were posted by Dogecoin (DOGE), which is up 10% on the day.

Similarly, the total crypto market cap has increased by 5.3% over the last 24 hours to rest at $3.34 trillion at the time of publication.

This performance comes as a result of general positive sentiment in the cryptocurrency market, possibly influenced by broader economic factors and political events.

For instance, with the upcoming inauguration of US President-elect Donald Trump on Jan. 20, there’s increasing optimism that this could lead to a more friendly regulatory environment for cryptocurrencies, including Solana.

Market participants are now shifting their focus on Trump’s inauguration with reports emerging that he could issue a number of pro-crypto executive orders on the first day of his second term in office.

Popular crypto analyst Altcoin Scholar says Trump’s day-one executive orders, which may address crypto de-banking and a bank accounting policy, could be the catalyst behind the next crypto bull run.

Solana-based memecoins flash green

Solana’s rally on Jan. 14 coincides with an ongoing recovery in the prices of memecoins on its network. Most are posting double-digit daily gains, as shown below.

Bonk (BONK), the leading Solana memecoin by market capitalization, has rallied over 7.4% over a 24-hour timeframe. Similarly, Pudgy Penguins (PENGU), ai16Z (AI16Z) and Fartcoin (FART) have risen by 13.4%, 18.3% and 59%, respectively, over the past day.

This uptick in the prices of Solana-based memecoins is preceded by increasing DEX activity on the layer-1 blockchain.

The chart below shows the weekly DEX trading volume of Solana memecoins—including those deployed on Pump.fun—increased from $31.5 billion from the last week of December to $44.7 billion during the week ending Jan. 12.

The increase in memecoin activity on Solana indicates higher network activity and growing adoption, increasing demand for SOL and its price.

Moving averages are in Solana’s favor

After dropping more than 35% from its new all-time high at $264, SOL found support from a major demand zone on the downside. This is the area defined by the $127 level and the 50-week simple moving average (SMA) at $163.

Solana retested this support zone between April 2024 and October 2024 before rallying to new all-time highs above $264 on Nov. 22.

This means that every time the price retests this zone, more buyers accumulate within this area, adding to the demand-side pressure.

However, SOL price encountered resistance between $213 and $260. This suggests that this is an important zone that bulls need to overcome in order to secure a sustained recovery.

The ongoing recovery in SOL has sparked optimism among analysts regarding the price’s ability to move higher in the short term.

“SOL bounced nicely from the range of $165-$175,” said Christiaan, partner at the Bybit crypto exchange, in a Jan. 14 post on X, adding that the price needs to hold above the $150-$160 range to secure the recovery.

“A breakout above $205-$210 will push it toward its all-time high.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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