Solana News Today: Solana Surges 12% Amid $4.4B Trading Volume and Crypto Market Optimism

Solana’s native token, SOL, has surged amid a significant spike in trading volume, reaching $4.4 billion in a single session, propelling the altcoin higher as bullish sentiment builds. The price has gained 12% since the weekend, signaling a potential continuation of its mid-July rally. This surge coincides with broader crypto market optimism, fueled by Donald Trump’s executive order granting crypto assets access to the $9 trillion 401(k) investment market, a move expected to boost institutional adoption of digital assets like Solana [1].

The increased volume reflects growing interest from retail traders who are shifting liquidity toward Solana, especially as the market anticipates potential U.S. interest rate cuts as early as September. Analysts suggest that these cuts could drive further inflows into risk-on assets such as cryptocurrencies [1]. With these macroeconomic tailwinds and regulatory developments, Solana is being positioned as a prime beneficiary of the next phase of crypto adoption.

Technical analysis indicates that Solana has broken out of a descending price channel, a key technical reversal pattern. However, momentum appears to be stalling at key resistance levels. The Relative Strength Index (RSI) has reversed sharply after hitting the overbought level of 70, suggesting buyer fatigue and the likelihood of a short-term pullback. Similarly, the Moving Average Convergence Divergence (MACD) has flattened above the signal line, another indicator of potential short-term weakness on the 4-hour chart [1].

Looking ahead, a retest of the $175 support level—previously an upper resistance line—is seen as a crucial next step. From there, Solana could attempt another breakout of a 7-month-long head and shoulder pattern, with the neckline at $186 acting as a key threshold. A successful breakout from this pattern could position Solana for a move toward its previous all-time high of $297, representing a potential 75% gain from current levels [1].

While Ethereum has already made inroads into traditional finance through its approved spot ETF, Solana remains on the cusp of similar institutional adoption. Analysts highlight the October 10 deadline for a potential spot SOL ETF as a critical date, with Bloomberg estimating a 90% approval chance in 2025 [1]. If approved, this could unlock a wave of TradFi demand for Solana, especially when combined with potential 401(k) inclusion and macroeconomic tailwinds from expected rate cuts.

Despite these fundamentals, Solana still faces a long road to challenging Ethereum’s dominance. However, the growing ecosystem, strong technical indicators, and regulatory developments have created a compelling case for continued bullishness around SOL.

Source: [1] Solana Price Prediction: $4.4B Trading Volume Sends SOL Soaring – Can SOL Overtake Ethereum? (https://cryptonews.com/news/solana-price-prediction-4-4b-trading-volume-sends-sol-soaring/)