Solana Price (SOL) Continues Its Upward Trend: What’s Driving It?

Key Takeaways:

• One of the biggest news events in recent history, when David Sacks, a venture capitalist and a major Solana backer, was tapped to be an advisor on AI and cryptocurrency for the Trump administration, stirred up some massive bullish momentum for SOL.
• The explosion of memecoins within the Solana ecosystem has been improving network activity and driving demand for SOL.
• Technical analysis points out that the short-term outlook for SOL is positive, though there is a possibility of an extended rally if key resistance levels are pierced.

The appointment of David Sacks, a popular venture capitalist and figure within the tech community, to the Trump administration as a policy advisor on AI and cryptocurrency, has given significant fuel to SOL’s price. As an outspoken Solana fan, he publicly disclosed a large ownership in the SOL token and continued to express optimism for the prospects that helped investors get their confidence back.

David Sacks – The main drive behind Solana’s price surge

Evidence of this includes frequent appearances on the All-In podcast to discuss his investments, which include SOL, and an unabashed statement of holding SOL through the FTX collapse. In fact, he even went as far as to deny speculation that he was selling any SOL post-crash.

Impact: While this development instills confidence, it could also set the stage for a possible Solana ETF approval sometime in 2025, which theoretically should drive more funds into SOL.

This isn’t the only driven price rally that SOL is exhibiting, as memecoins are taking over the Solana ecosystem as well. Memecoin players such as Dogwifhat (WIF), Bonk (BONK), and Peanut the Squirrel (PNUT) have jumped multifold in the last 24 hours, as network action heats up. Demand has thus spiked for SOL—the gas token used to pay transaction fees.

List of Solana memecoin

Memecoin 24-hour Increase (%) Example:

• Dogwifhat (WIF): 7.5%
• Bonk (BONK): 6%
• Peanut the Squirrel (PNUT): 4.5%

Data: According to Dune Analytics, memecoin projects are developing on Solana like a boom. Many projects were launched on the platform called pump.fun, and these created enormous revenues of as high as 1.61 million SOL, approximately $300 million. In November 2024, memecoin trading volumes surged on Solana to highlight robust growth in their volumes and value.

More News: Analysts Foresee a Staggering 10,000% Surge in Solana’s Value

From the technical analysis perspective, the chart of SOL looks promising as its price seems to spring back from the support line of an ascending triangle, which in turn is a pattern that normally witnesses an uptrend continuation.

SOL/USD daily price chart. Source: TradingView

Prediction: Once the SOL breaks above the resistance level of around $250, then the chances are it may surely rise toward the range of $300–$310 in December 2024. Should it fail to break, a sideways movement or price correction may be witnessed further. This is just a prediction based on the technical analysis and does not guarantee outcomes.

The current rise in SOL basically comes from the coincidence among strong support from influential figures, the explosive memecoin boom, and a positive perspective unveiled by tech analysis. However, essentially, the cryptocurrency market is highly capricious and very precarious. It is necessary, therefore, for all willing investors to perform vital calculations of risks and proper selection of strategies prior to real investments in SOL. Say no to FOMO and do not blindly stick with the herd.

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