Solana – All the reasons why SOL must hold on to $200 before Trump’s inauguration
Solana – All the reasons why SOL must hold on to $200 before Trump’s inauguration contributor Share this article Solana needs to hold the $200 to target a surge to $220 as Trump’s inauguration draws nearer However, traders shouldn’t expect smooth sailing anytime soon No doubt, investors have pounced on the oversold signal from Solana, sending its trading volume soaring by nearly 60%. This surge triggered a powerful green candlestick, with SOL jumping by an impressive 9% in just one day to reclaim $200 – A level it hadn’t touched in a week. Now, speculations are rife, with many eyeing a potential rally to $220 in the short-term. Let’s break down the odds. Investors need to show more confidence in Solana Solana, at the time of writing, was trading 20% above its previous dip to $168, with a neutral RSI and the MACD just turning bullish – Showing there’s still plenty of room for momentum to build. Looking at the broader market, high-cap alts have been receiving fresh capital inflows, but none have broken key resistance levels – Except for XRP, which surged past its November highs. For Solana to hit $220, it needs to climb by another 10% – A target that seems achievable in the short-term. However, despite its recent recovery, SOL’s erratic price action highlighted a key issue – Investors still lack sustained confidence. With a 30% surge needed from its latest dip to hit that target, profit-taking could become a real concern – Especially if traders decide to cash out early. On top of that, the SOL/BTC pair only saw 166.46K in volume, a far cry from XRP/BTC’s 55 million. No doubt, investors seem to be shifting their focus to other altcoins this cycle. Source: TradingView But, it might not be too late… With the crypto market gearing up for a potential bull rally ahead of Trump’s inauguration, fresh capital is expected to flow in. For Solana to attract this influx, it needs to hold around $200 – A level that could spark FOMO and draw in investors. The Futures market is already showing signs of this shift. Volume is up by 49.61%, and Open Interest (OI) is just 4% below its all-time high of $6.68 billion – Perfectly aligning with Solana’s mid-November peak of $264. Maintaining $200 is now critical to avoid a potential long squeeze. Source: Coinglass Realistic or not, here’s SOL’s market cap in BTC’s terms While a 10% surge for Solana seems within reach, it’s likely to be driven by broader market forces. With investor confidence shaky, a sustained rally isn’t guaranteed. Many traders may opt to exit early, eyeing a tempting 30% profit. So, expect some volatility as Solana hits key levels. Share