Explore Solana’s recent price surge, driven by whale activity, ETF optimism, and regulatory shifts. Learn key factors behind the rally and what lies ahead. Solana has witnessed a massive surge in November, becoming the fourth-biggest crypto in the market. Despite the short-term pullback and deconsolidation range, the anticipation among the Solana whales has significantly increased.
With the new Trump administration going pro-crypto, the Solana whales are accumulating SOL tokens in the hopes of Solana ETF approval. Increasing the approval chances, the Solana whales are also changing dynamics with the new U.S. government in power and supporting the new age of crypto.
Will these changes cause Solana to surge massively beyond the $400 mark? Let’s find out.
Key Drivers Behind Solana’s Rally
Whale Activity
Among the top-buying Solana whales, two wallets belonging to the same person have recently withdrawn 250,109 SOL tokens worth 60M from Kraken over the past 30 days. Despite the meme coin generator PumpFun depositing 65,000 SOL tokens over Kraken, this withdrawal comes. PumpFun has deposited nearly 800,000 SOL tokens over Kraken and sold nearly 265,000 tokens in exchange for 41.64M USDC.
Amidst the rising demand for Solana Whales, the number of active addresses on the Solana network hit a new all-time high of 6.63M on 22nd Nov. It is currently at 5.75M and showcases a streak of higher high formation. On a monthly scale, the active addresses in November marked the highest number of active addresses ever over the network, with 134.37M addresses.
ETF Optimism
Another factor increasing the demand for Solana is the ongoing struggle to get the approval of Solana ETFs. In recent talks with the SEC, the Solana ETF issuers discussed their S1 form registration.
VanEck, 21Shares, and Canary Capital have submitted their S1 applications, with the first two planning to list on the CBOE exchange. Market experts anticipate an increased chance of witnessing 19 B4 filings from exchanges on behalf of prospective issuers. This will be the next step in the ETF approval and will likely increase the hype around Solana.
Furthermore, considering the crypto sentiments and decisions in the upcoming regulations, the Trump administration has significantly increased the chances of Solana ETF approval. The market anticipates approval in 2025, which is reflected in bullish Solana predictions by industry experts.
Regulatory Landscape
In July 2024, at the Bitcoin conference in Tennessee, Trump pledged to fire Gensler if re-elected. Last week, Following Trump’s landslide victory in the 2024 elections, Gensler announced his resignation from the SEC office. His resignation will be effective January 20, the day of Trump’s inauguration.
This has led to a new roster of potential SEC chairs. President-elect Donald Trump is discussing finding a new chair for the SEC and has asked the crypto industry to state their minds and help find potential picks. The current candidates are Paul Atkins, the former SEC commissioner, Brian Books, and Mark Uyeda.
Solana Price Analysis and Predictions
The below Solana price chart showcases a massive 70% price surge, from $155 on Nov. 5 to a new all-time high of $264.60 on Nov. 22. However, the overhead supply resulted in a double top reversal, leading to a pullback.
The pullback phase is currently forming a symmetrical triangle pattern with a local support trend line. The Solana price is $237.80, forming a bullish candle to create a morning star pattern.
The morning star pattern is based on the local support trend line, increasing the chances of a bullish comeback. As the Solana price trend approaches the bottleneck part of the symmetrical triangle pattern, it increases the possibility of a bullish breakout. A potential breakout from this barrier could signal the end of 37 months of accumulation, setting up a major rally to the $500 psychological level.
Furthermore, the triangle pattern is indecisive, but the upside chances are significantly higher with the prevailing bull trend in action. Using the trend-based Fibonacci level over the previous bull run and the current pullback, the crucial support is highlighted at $221.00.
Below this, another price support is near the $200.00 psychological mark, which is near the $203.00, slightly above the $200.00 psychological mark. In case of a bullish breakout, the Fibonacci level spins the price target at $289.30. This assumes that the breakout rally will result in a new all-time high.
The 100 EMA provides dynamic support for the bullish trend, and the 4-hour RSI line reflects minor bullish divergence. Price also takes support from the 100 EMA.
Expert Opinions on Solana’s Future
Supporting the bullish technical analysis, Titan of Crypto, an independent analyst, has highlighted a major bull run in Solana. In the analysis, Titan of Crypto shared a cup and handle pattern breakout. This is a highly successful bullish pattern known for giving massive upswings.
According to his chart, the November rally has surpassed the neckline and will likely continue the bull run. On the monthly chart, the price target is $400. This will create a new all-time high for the pattern and likely drive a new rally in the Solana-based altcoins.
Amid increasing bullish anticipations, the Solana Network has witnessed a massive outgrowth, surpassing Ethereum in multiple ways. The decentralized exchanges on the Solana Network have recorded a monthly trading volume of $100 billion.
This is a more than 100% increase compared to October’s $5.25 billion. It also significantly surpassed Ethereum’s $55 billion trading volume in the same month.
Furthermore, with a solid meme coin game, pump fun drives daily traction over the Solana Network. Furthermore, the DeFi protocols over the Solana Network, like Radium, have witnessed 63% of the weekly trading volume, processing $27 billion weekly. Hence, as the network is rapidly growing, Solana might come through to its tag of Ethereum killer.
Conclusion
Hence, despite the uncertainties in the crypto market due to Bitcoin struggling to reach the $100,000 mark, the Solana factor is staying strong. With the rising support of whales, the network is rapidly increasing, and the market demand has increased significantly.
With Trump taking over the US administration in the upcoming months, the regulatory clarity will push the Solana ETF on a fast-track path. Hence, the Solana forecast anticipates a massive surge to a new all-time high in the coming months.
