The Solana (SOL) price could be setting up for a major short-term rally, with bulls eyeing a retest of the record highs printed near $300 earlier this year, 2x above current levels.
Last around $150, the Solana price has now rallied over 55% since its April lows around $95, printing a series of higher lows and breaking back above its 21 and 50DMAs in the process.
Wednesday’s bounce at the 21DMA confirms the bullish trend, and suggests that a near-term breakout above last week’s highs at $157 is likely.
The rally in the Solana price comes amid a broad recovery in risk assets in recent weeks, with Bitcoin rallying back towards $100,000 and the major US equity indices reversing most of their decline from February’s record highs.
Markets appear to be pricing in a less aggressive trade policy from US President Donald Trump.
The market’s current sentiment is seemingly based much more on hope than reality, and the rebound in sentiment has also been (so far) ignoring the downturn in US economic indicators that suggests recession could be on the horizon.
As a result, this is a rally that could easily come unstuck. However, for now, it probably has legs.
And that bodes well for Solana, which is also likely to benefit from ETF hype in the coming months.
Solana Price Prediction – Retest of All-Time Highs This Summer?
Technicals and short-term market fundamentals all point towards a rally in the coming weeks.
If the US economic data can hold up, perhaps that rally could even extend to a few months.
That could give the Solana price a clean runway to retest its 2025 record highs as traders also pile in ahead of likely spot Solana ETF approval in the US this summer.
Per Bloomberg Intelligence, spot Solana ETFs current have a 90% chance of being approved, with six asset managers waiting to launch products.
ETF approval will open the door to a new wave of inflows the Solana market has so far never been able to benefit from.
With other ETFs for the likes of XRP and Dogecoin also likely to gain approval, could a new alt coin season be around the corner.
Well, against the backdrop of a US economy suffering badly from trade uncertainty, and a Fed reluctant to ease monetary policy due to concerns about sticky inflation, now probably isn’t the best time to bet on a 2021-style altcoin surge.
Sure, the Solana price could retest 2025 highs near $300 if it break above resistance in the $170-180 area.
But a new surge towards, say, $500 will require a strong macro economic backdrop. More specifically, it will likely require a combination of 1) a strong US and accelerating global economy and 2) lots of liquidity injection coming from the world’s major central banks.
This, combined with ETF inflows, would be the fuel the Solana price would need to power on towards $500.
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