Why is Solana (SOL) price up today?

Solana (SOL) price is up today, matching the upside moves elsewhere in the crypto market as Bitcoin (BTC) rises above $100,000.

Data from Cointelegraph Markets Pro and TradingView shows that SOL’s price was $212, up more than 5% in the last 24 hours and 12% over the last seven days.

Let’s look at the factors behind SOL’s bullish momentum today.

Optimism returns to the crypto market

The cryptocurrency market as a whole has experienced positive momentum in recent days, with Bitcoin and other major cryptocurrencies also showing gains. 

Bitcoin led the gains, jumping as much as 5% from a low of $97,200 on Jan. 16 to an intraday high of $102,088 on Jan. 17. BTC price is up 2% over the last 24 hours to trade at $101,396 at the time of writing. 

This boosted market sentiment from Bitcoin has also led to a positive impact on other cryptocurrencies.

For instance, other top-cap cryptocurrencies such as XRP (XRP), BNB Chain’s BNB, Dogecoin (DOGE) and Cardano (ADA) are also flashing green, as shown in the figure below.

Similarly, the total crypto market cap has increased by 2.2% over the last 24 hours to $3.57 trillion at the time of publication.

Broader economic factors and political events influence this general positive sentiment in the cryptocurrency market.

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.

Reports emerging that Trump’s administration is considering a US-based crypto reserve, potentially prioritizing coins like Solana and XRP.

🇺🇸 BREAKING: Trump considers US-based crypto reserve, potentially prioritizing coins like Solana and $XRP. pic.twitter.com/Lwix7XGrHx

— Cointelegraph (@Cointelegraph) January 16, 2025

Optimism around possible Solana ETF approval

There’s speculation around the potential approval of a Solana exchange-traded fund (ETF) in the United States, which could drive significant investment into SOL, similar to what happened with Bitcoin and Ethereum in 2024. 

The approval of US-based spot Bitcoin ETFs in January 2024 saw the price of the crypto asset rise by 60% from around $46,000 on Jan. 10 to its March 14 all-time high at $73,794. Similarly, the approval of spot Ethereum (ETFs) was preceded by a 40% rise in Ether’s price. 

Analysts at JPMorgan have forecasted that a spot Solana ETF could attract between $3 billion and $6 billion in capital inflows.

This potential influx of capital can propel SOL’s price substantially higher toward or beyond the $500-$750 range, depending on market conditions and the scale of institutional inflows.

“Solana is the best play right now,” DeFi researcher Jussy.Sol said in a post on X. The key events to watch will be Trump’s inauguration on Jan. 20 and the first deadline for a decision on approving a spot Solana ETF on Jan. 23.

“Once approved, we could see a $50 – $100 one-day candle.”

Pseudonymous trader Momin added that the approval of a spot SOL ETF over the next few days could send its price to “new highs.”

Meanwhile, several major asset managers have submitted applications for a Solana ETF, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital.

Related: Solana ETFs may take until 2026: Bloomberg Intelligence

The SEC is expected to make preliminary decisions on these applications before the end of January. Grayscale’s application faces a deadline on Jan. 23, with other applicants expecting decisions by Jan. 25.

SOL price ready for all-time highs

Data from Cointelegraph Markets Pro and TradingView shows that SOL is now 24% below its all-time high of $264, reached on Nov. 23, 2024. Bulls have established support around $200 and $208 at the 100-day and 50-day simple moving averages (SMAs).

The daily relative strength index (RSI) has recorded higher highs since Jan. 13 with no divergence, indicating that the upward momentum remains strong.

The next immediate barrier sits at $220, which, if broken, the next price target would be the all-time high of $264.

According to popular analyst Cryptobits, SOL’s recent low at $169 reached on Jan. 13 marked the local bottom for the altcoin. He added that Solana’s fundamentals remain strong in the long term and support its upside.

“With bottom in, $SOL looks to push further higher. Pressure should build up on $220, $230 & $240 in the days ahead.”

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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