The crypto market remains turbulent as trading volumes surged on Monday amid renewed excitement. However, Donald Trump’s surprise move has redirected altcoin liquidity towards the OFFICIAL TRUMP Coin, causing declines in other cryptocurrencies. But what hasn’t happened since March 2021? And how high could Solana (SOL) go?
Ethereum (ETH): A Diverging Path
While Bitcoin (BTC) inches closer to record highs, Ethereum (ETH) struggles. Trump’s preference for Solana, due to its speed and low transaction costs, has intensified selling pressure on ETH. Ethereum co-founder Vitalik Buterin recently hinted at potential governance changes within the Ethereum Foundation. Despite these developments, Ethereum’s price has not benefited, as 540,000 ETH (worth $1.84 billion) was withdrawn from exchanges last month.
ETH’s weakness is reflected in the broader altcoin market. The ETHBTC trading pair has hit levels not seen since March 2021, confirming that a sustained altcoin recovery has yet to begin. A deeper dip below 0.03 BTC could spell trouble for altcoins across the board.
Solana (SOL): Gearing Up for a Rally?
For U.S.-based crypto companies, a new chapter begins next week. Solana, alongside Ripple, could see significant rallies supported by Trump’s endorsement. Solana’s primary advantages—high speed and low transaction fees—make it a preferred choice for investors. Additionally, its robust meme coin ecosystem attracts new market participants during bull runs.
Crypto analyst Scott Melker recently highlighted that if SOL can close above $175, it could move toward $255. A sustained breakout above $255 would signal the potential for even higher highs. Some experts have previously set targets as high as $600 for SOL. To reach a $546 milestone, Solana would need to exceed a $260 billion market cap, placing it among the top three cryptocurrencies. Considering SOL’s rise from $8 to $278, this ambitious target doesn’t seem entirely unrealistic.
Conclusion
The coming weeks could be pivotal for Solana (SOL) and the broader crypto market. With its innovative technology and growing ecosystem, Solana stands out as a strong contender for future growth. For more in-depth analysis and updates, follow Dey There.
