The price of Solana (SOL) experienced a significant increase of approximately 4.75% in a single day, surpassing the $154 mark and reaching its highest level in nearly two weeks. Over the past fortnight, Solana’s price has climbed by 26.85% from a recent low of around $121.50. This surge comes amid predictions that Donald Trump’s chances of winning the upcoming US presidential election have risen, according to the prediction platform Polymarket.
Why Could Solana Benefit?
A Trump victory could potentially lead to more crypto-friendly regulations in the US, which would benefit cryptocurrencies like Solana. These regulations may include approval for spot exchange-traded fund (ETF) applications, moving away from the stringent approach of the current Biden administration. Analyst Lark Davis has predicted that SOL’s value could increase ninefold following the approval of a spot Solana ETF.
How Did Market Data React?
The market data for Solana following the Trump assassination attempt also painted a positive picture. Open positions for SOL increased by $140 million, with funding rates turning positive. This indicates renewed interest and activity in Solana’s market.
Insights from Solana’s Chart Analysis
Recent Solana price increases were driven by the liquidation of short positions, which was the third-highest after Bitcoin and Ethereum in the last 24 hours. As of July 15, the Solana futures market saw $7.67 million worth of short liquidations compared to $700,250 worth of long positions. This liquidation triggered a buying frenzy, causing the price to climb.
As Solana continues to exhibit a technical recovery within the descending triangle range, the price has been in recovery mode since testing the lower trend line of the triangle as support. If the upward trend continues, the SOL price is expected to rise further towards the upper trend line of the triangle, around $160, in the coming days.
Key Takeaways for Investors
– Monitor regulatory changes in the US closely, as they could significantly impact Solana’s price.
– Pay attention to market data and funding rates as indicators of market sentiment.
– Consider the implications of short liquidation events and their potential to trigger buying frenzies.
– Keep an eye on Solana’s technical charts for signs of continued recovery and potential price targets.
These actionable insights can provide investors with valuable information for making informed decisions regarding Solana investments.