Solana Price Prediction: 40-Month Accumulation Phase Nearing Its End?

On January 20th, the crypto market witnessed heightened volatility as Donald Trump took the oath of office, becoming the 47th President of the United States. With the Bitcoin price hitting a new all-time high of $109,114, several top altcoins, including SOL, recorded a notable jump during the opening of the U.S. market. The Solana price is nearing a bullish breakout from the $300 barrier, backed by a surge in network activity. 

Key Highlights: 

• The formation of a cup and handle pattern indicates huge upside potential for Solana price.
• The $260-265 stands as a key resistance region against crypto buyers.
• The Average Directional Index (ADX) wavering to 27% value indicates the recent correction has stabilized the asset from the prevailing uptrend.

Trump Token Frenzy Pushes Solana Fees to All-Time High

Solana’s blockchain witnessed an unprecedented surge in transaction fees, reaching an all-time high of 6,000 SOL within just 10 minutes during the release of the TRUMP token. Despite transaction counts dropping from 450,000 to 150,000, the elevated fees reflect the intense demand surrounding the token’s debut.

This surge underscores the growing pressure on blockchain networks during high-profile events, where demand often leads to higher costs per transaction. The TRUMP token launch not only highlighted the power of political narratives in crypto but also exposed the scalability challenges faced by popular blockchain ecosystems like Solana.

This onchain data from Glassnode projects a bullish outlook for Solana price as it indicates the network’s popularity for politically driven tokens. And exposes critical features that need improvement to maintain users’ trust.

Solana Price Hints Major Breakout Ahead 

Amid the recent market recovery, the Solana price showcased a significant surge from $181 to $146, accounting for a 36.5% surge. This upswing, when analyzed in the daily chart, shows the formation of a traditional reversal pattern cup and handle.

Theoretically, the pattern drives a long U-shaped recovery followed by a temporary pullback to regain bullish momentum. In the last two days, the SOL price teased an upside breakout from the neckline resistance at $60-$65.

The long-wick rejection candle at the aforementioned resistance indicates the sellers continue to defend these higher levels. If the supply pressure persists, the Solana price could prolong its sideways action.

Conversely, a successful breakout from the $65 barrier with the daily candle closing could accelerate the bullish momentum for the $500 rally pattern.

Also Read: Congresswoman Calls Trump Memecoin Project ‘Worst Crypto’