$300 by the end of January

The crypto market seems to have returned to bull after absorbing the drop at the beginning of the week, and the price of Solana (SOL) is gearing up for dizzying forecasts.

The new executive order signed by Donald Trump for the establishment of a digital asset reserve in the USA has brought back that confident sentiment typical of a bull market.

Now the forecasts highlight the possibility that SOL will reach the price target of 300 dollars by the end of January.

Let’s see all the details below.

The crypto market is regaining lost ground after the latest retracement: watch out for Solana (SOL)

The cryptocurrency market regained strength yesterday after the strong correction observed at the beginning of this week, driven by the gains recorded by Solana (SOL) and other cryptos.

On Monday, the prices of the major crypto assets were in deep red, shaken by the launch of the memecoins TRUMP and MELANIA that had stolen the public’s attention.

A few days later, however, optimism returns to smile on the crypto markets, with Bitcoin (BTC) turning bull above 105,000 dollars.

The reason that triggered this rise is likely represented by the signature of President Donald Trump for the executive order that sees the United States establish a reserve of digital assets as Treasury.

This news has brought greater conviction among crypto traders that the USA will continue to favor the growth of the crypto world under the new administration.

In particular, it is thought that in the coming months new crypto ETFs may be added and that new favorable regulations for the industry could emerge.

Solana (SOL) leads the current recovery with a growth of 7.2% in the last 24 hours, reaching the price level of 260 dollars.

The popular cryptocurrency is up by 24% in the weekly charts, 37.6% in the 14-day charts, and 33.5% in the one-month charts.

At this moment SOL is about 10% away from its all-time high prices recorded on Sunday, January 19, and it might try to attack them in the coming days.

RSI and volumes accompany this bull movement, leaving room for the next maneuver that will likely see a new attempt at a leg up.

Attention, however, to possible fakes: the most important price level to keep under control is that of 270 dollars. If SOL manages to stabilize quickly above it, we could wait with more confidence for the rise towards new highs.

Performance and correlation of the price of SOL

Solana (SOL) has been one of the leading coins in the crypto market for over two years now.

From January 1, 2023, its performance has been by far greater compared to those of other high-cap crypto assets.

In particular, until today its price has increased by 2497%, with a strong surge starting from October 2023 that continued for most of 2024.

In comparison, BTC has grown by “only” 533%, but it reached new all-time highs before SOL itself did. ADA underperforms the benchmark with a performance of 304%, along with BNB at 184% and ETH at 175%.

Various altcoins have not yet exploded during this bull cycle, recording questionable growth if correlated to those of the orange coin.

It is not the case of Solana, which as we have seen has already widely given big smiles to its token holders.

Very interesting to observe how since January 2023 SOL has detached from the correlation with ETH, instead embracing a greater affinity with BTC.

From the Dune Analytics chart, we notice how the 30-day “rolling correlation of returns” ratio has quickly fallen below zero concerning ETH.

In 2024 the SOL-ETH ratio remained almost unchanged, although it recorded several jumps between 0.3 and -0.3.

As for BTC, the correlation ratio with SOL has almost always been in positive territory between the values 0.9 and 0.4, although it briefly fell below zero at the beginning of 2024.

At this moment, the price of Solana seems to move more similarly to BTC than to ETH.

It will be very interesting to see how this situation will change when (and if) ETH surpasses its price highs.

Price Forecast for Solana (SOL): $300 by the end of January

The price forecasts for Solana (SOL) are widely positive in this bull market phase.

Currently investors seem particularly confident that during 2025 the first exchange-traded fund of the currency may be approved.

An event of this kind could be considered as the catalyst for the next major bull movement for SOL, as it would attract a lot of capital from the stock exchanges.

According to the forecast market Polymarket, traders estimate a 34% probability that SOL will manage to exceed the price target of 300 dollars by January.

This would necessarily imply a rally during the next week, with Solana needing to add about 10 billion in capitalization.

Likely, if Donald Trump continues to sign executive orders to the advantage of the sector, we could easily expect such a movement from SOL.

If, on the other hand, the US president waits before the next move, we might consider such a bullish scenario as unreliable.

There will also be a need to see how the two presidential memecoins TRUMP and MELANIA will move, having been launched precisely on the blockchain of Solana.

In a scenario where these coins will still attract high trading volumes, Solana would find room to gain speculative traction. The analysis platform CoinCodex seems less bull compared to the current sentiment, and predicts that the asset will consolidate its price during the next week.