Solana (SOL) Makes Strong Comeback Amid Trump’s Strategic Reserve Move

• After plunging as low as $125.74 last week, Solana is now seeing a tremendous comeback.
• At the time of writing, SOL is trading at $178.14, up 24.51% in the last 24 hours as per data from CMC.

In the first few days of the new month, cryptocurrencies such as Solana (SOL) are gaining attention in the cryptocurrency market. After plunging as low as $125.74 last week, Solana is now seeing a tremendous comeback.

Price action in the cryptocurrency market has cooled down compared to the massive liquidations that occurred earlier this week. Market watchers are beginning to think the worst may be behind, now that Bitcoin is back over $90,000. 

US President Donald Trump’s announcement of the Crypto Strategic Reserve made a market-wide upsurge. In his announcement on the formation of a US Crypto Strategic Reserve, Trump chose to include XRP, Solana (SOL), and Cardano (ADA) as initial assets. Bitcoin (BTC) and Ethereum (ETH) were eventually included.

Bulls Back in Action

The release of the FTX Estate’s hoard was a key factor in the February Solana sell-off. The market’s enormous liquidity caused a sell-off fear, which in turn accelerated the price decline. Despite a $2 billion token unlock—the largest token unlock for Solana—on March 1—releasing more than 11.2 million SOL tokens into circulation—the price of Solana nevertheless managed to rebound over $175 amid Trump’s recent move.

Now that this obstacle has been removed, investors are shifting their attention to the possible implications of the Solana ETF clearance. Meme coins have been a boon to SOL because of their significant popular appeal, but the ETF will increase institutional investment.

At the time of writing, SOL is trading at $178.14, up 24.51% in the last 24 hours as per data from CMC. Moreover, the trading volume is up 251.91%. If the price manages to go past $180 resistance level, then it will likely climb all the way to test $205 level. However, if bears drive the price below $138 level, then it will likely retest $125 support level.