Solana (SOL) has been one of the best performing cryptocurrencies in the first week of November. Its value increased by more than 25% and crossing the $200 mark. As of press time, SOL price was trading at $198.94 having been priced at $157 on November 3.
This rally is part of a larger crypto market recovery that started after the recent election of Donald Trump. This has positively affected the investment sentiment across the board.
The recent trend raised the interest of analysts toward the $210 price level which may serve as a psychological level.
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If the SOL price can close and hold above $210, then it could open the door for more upside with targets at $225 possible. However, if it experiences selling pressure, then important support levels can be seen at $189 and $171.
Increased Staking Activity Reduces SOL’s Circulating Supply
Another factor that contributed to Solana’s price surge is the massive growth of staking in its network.
Since the start of November, Solana investors have added another 4.93 million SOLs staked with a value of around $1.3 Billion. As of November 7th, the total staked value has now reached 397.93 million SOL.
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The increase in staking also demonstrates that investors have high expectations for the asset in the future and. At the same time, the circulating supply is decreased temporarily, which is beneficial for the price.
According to StakingRewards(dot)com, there has been a rise in the number of SOL staked in yield-bearing smart contracts. This shows that investors are not unloading their SOL during this bull market.
Fed Rate Cut and Market Optimism Bolster Solana
Recent actions by the U.S. Federal Reserve to cut interest rates by 25 basis points have only helped to propel Solana higher. With the victory of Trump and the rate cut, risk assets including cryptocurrencies are also on the rise.
The crypto market has reacted well, with Bitcoin rising to new highs above $77,199 and Ethereum almost touching $3000.
This optimistic market climate has boosted demand for Solana, particularly as it continues to capture attention through high meme coin activity.
The increase in transaction volume and fees on Solana’s network has occasionally pushed it ahead of Ethereum in terms of network fees, which has strengthened the appeal of SOL in the eyes of investors.
Analysts See Potential for Solana to Approach All-Time High Levels
The strong weekly performance has prompted bullish predictions for Solana’s price trajectory. Some analysts see the potential for SOL to revisit its 2023 peak of $260 if it can maintain support above $200.
Independent crypto analyst Carl Runefelt has noted the formation of a symmetrical triangle on Solana’s chart, which could indicate a breakout toward $300 if momentum continues.
Similarly, another analyst, Crow, has set ambitious targets between $650 and $1,000, citing positive candlestick formations as a basis for his outlook.
Solana’s ecosystem growth is another factor supporting these optimistic projections. Messari’s Q3 2024 report shows a 26% quarterly increase in total value locked (TVL) on Solana’s DeFi platforms, now totaling $5.7 Billion.
Increased activity on decentralized exchanges and lending platforms like Kamino, which saw a 57% rise in TVL, underscores Solana’s expanding utility within the DeFi space.
Solana Spot ETF Under New U.S. Administration
Following Trump’s election win, market participants are hopeful for a more crypto-friendly U.S. regulatory environment, including the potential approval of a spot Solana ETF.
While no specific timeline has been announced, analysts believe that a regulatory shift could bring new capital into the Solana market. Veteran trader Peter Brandt has expressed short-term optimism for Solana, suggesting that it may outperform Ethereum in the near term.
