Solana price rose for the fourth successive day, gaining 4.4% to trade at $220 at the time of writing. The coin has been on a strong uptrend this week and has gained nearly 20% in the last four days.
The momentum on the coin is upbeat on the heels of news that incoming US President Donald Trump could be open to establishing a strategic Federal cryptocurrency reserve with the SOL coin as part of it.
Other coins mentioned for potential inclusion include USDC and XRP. Trump had initially stated the need to have Bitcoin as a strategic Federal asset, and the latest development, if true, cements his positive leaning towards digital assets.
Outside of the CEX and DEX ecosystem, Solana also recorded a spike in its DeFi performance. According to DeFiLlama, the Solana blockchain saw its Total Value Locked (TVL) rise by 8.9% in the last seven days, outperforming market leader, Ethereum, which had +4.56%. Solana’s DeFi rise locked in $840 million during the period, helping boost SOL price.
The downside to Solana price momentum is the significant decline in its traded volume. The coin had a 4.8% drop in its 24-hour volume at the time of writing, denoting a weakening uptrend. Similarly, the Average Directional Index (ADX) reading was at 21%, adding credence to the likelihood of a takeover by the sellers.
The momentum on Solana price calls for further upside above the $218 pivot mark. With the buyers in control, SOLUSD will likely meet the first resistance at $225. However, a stronger momentum could enable the coin to break above that barrier and test the second resistance at $230.
Conversely, the sellers will take control if SOL price breaks below $218. If that happens, SOL price will likely go to the first support at $215. Breaking below that mark will invalidate the upside narrative. Furthermore, it could strengthen the downward momentum to extend losses and drive the coin lower to test the second support at $208.
This post was last modified on Jan 17, 2025, 14:50 GMT 14:50