Trump’s Endorsement And SVM To Propel Solana To New Highs

Solana (SOL) has become a headline grabber in the crypto world, with its market capitalization surging by $28 billion over the past month.

Solana’s cryptocurrency, SOL, has experienced a significant increase in value, currently trading at $251.28.

This growth is attributed to recent developments, including the launch of President Donald Trump’s meme coin and the emergence of Solana Virtual Machine (SVM) blockchains.

Trump’s Crypto Endeavors Boost Solana

On January 20, 2025, President Trump introduced a new cryptocurrency token, the Official  Trump meme coin, which rapidly gained value prior to his inauguration.

This initiative has been perceived as a sign of the administration’s pro-crypto stance, contrasting with previous policies.

The increasing activity on the Solana network has led to higher fees and congestion, prompting the development of SVM blockchains.

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This strategy mirrors Ethereum’s approach with its Ethereum Virtual Machine (EVM), aiming to enhance interoperability and user experience.

The Phantom wallet, similar to Metamask, now allows users to switch between various SVM-compatible networks, facilitating seamless transactions across different blockchains.

The introduction of SVM-compatible blockchains marks a turning point for Solana.

These blockchains aim to modularize the network, enabling faster and more efficient scaling.

Solana’s Phantom wallet is already paving the way for easier network switching, similar to Ethereum’s Metamask wallet, which allows users to toggle between various EVM-compatible blockchains.

As more SVM-compatible blockchains emerge, the Phantom wallet is expected to list additional networks, further enhancing user convenience.

This development also opens the door for issuers of SVM-compatible tokens to pitch new investment opportunities, potentially attracting more capital to the ecosystem.

Solana’s market capitalization has seen a substantial increase, reflecting growing investor confidence.

Analysts suggest that the combination of political endorsements and technological advancements could propel SOL’s value even higher in the coming months.

SOL Price Analysis

Over the past 24 hours, Solana’s (SOL) price has risen by 9.13%. The trading volume increased by 15%, reaching $10.1 billion.

This upward trend has contributed to a 22.91% gain over the past week and a 38.75% increase year-to-date.

Technical indicators suggest continued bullish momentum. The Simple Moving Average (SMA) on the daily chart indicates strong support, reflecting higher buying pressure.

Additionally, the Relative Strength Index (RSI) remains near the overbought zone, suggesting potential for further gains.

If this positive sentiment persists, SOL may test its resistance at $270. A breakthrough could propel the price toward the $300 mark.

Conversely, if bearish forces emerge, the price might decline to the $237.50 support level. A further drop to $210 may occur if selling pressure continues.

Analysts project a potential 150% increase, targeting a price of $550 by the end of 2025. As of January 24, 2025, SOL is trading at approximately $264.76.