Crypto: These Factors Could Drive the Price of Solana to Explode

The price of Solana recently recorded a decline of 16.8% from its annual peak, reflecting a pause in the crypto momentum. Despite this correction, technical and fundamental signals suggest a long-term bullish potential. Between descending wedge, regulatory supports, and growth catalysts, SOL maintains hopes for a new push toward highs.

Solana, solid fundamentals and a leading position in crypto

Who could have predicted the meteoric rise of Solana? Today, this blockchain stands as a serious competitor to Ethereum, showcasing remarkable performance. The fifth largest cryptocurrency with a market cap of 105 billion dollars, Solana consolidates its position as a key player in the sector.

At $220, its price reflects a recent correction while indicating a technical consolidation phase. Its robust ecosystem, supported by more than 30 billion dollars in stablecoins and a total value locked (TVL) of 9.12 billion dollars according to DeFi Llama, reinforces its resilience.

Solana also challenges Ethereum thanks to its growing dominance in the decentralized exchanges (DEX) market. In just one week, volumes on its platforms like Raydium and Orca reached 29.7 billion dollars, significantly surpassing Ethereum’s 21 billion dollars.

Moreover, Solana shines in the field of decentralized infrastructures (DePIN), thanks to innovative projects. HiveMapper, for example, aims to compete with Google Maps, having already mapped 17 million kilometers of roads worldwide. For its part, Helium is reinventing wireless networks by leveraging a decentralized model, offering unprecedented prospects for the industry.

Finally, Solana is successfully capitalizing on the crypto meme phenomenon, with a total market cap exceeding 19 billion dollars. Projects like Dogwifhat and Bonk embody this dynamic, attracting a diverse user base.

A bullish potential to watch

The technical analysis of Solana reveals particularly encouraging signals. After peaking at $264.40 on November 22, the crypto recently retested a crucial support level at $205, forming a cup and handle pattern, traditionally interpreted as bullish.

Persistence above the 50-day moving average confirms the positive momentum. The descending wedge pattern suggests a high probability of a bullish breakout in the coming weeks, with potential targets of $264 initially, then $400.

The political horizon could also play a catalytic role. Expectations of regulatory easing under the Trump administration and the prospect of a spot ETF fuel optimism. The influx of institutional capital, as recently observed with Ethereum, could significantly boost valuation.

In summary, Solana finds itself at a technical and fundamental crossroads. Its strong performance in the DEX market, its growing role in decentralized infrastructures, and its positive technical signals position it for a bullish recovery. With a descending wedge in play and favorable regulatory expectations, Solana could become one of the best-performing cryptos in the months to come.