Solana (Sol) prices are today supported by a major recovery in the broader cryptocurrency market. Sol’s rebound came when President Trump announced that Solana would be included in the strategic crypto sanctuary.
Cointelegraph Markets Pro and TradingView data shows Sol’s prices are trading at around $162, up over 15% in the last 24 hours, up over 28% from the local low on February 28th.
SOL/USD daily chart. Source: CointeLegraph/TradingView
Several factors driving today’s Sol price, including:
Sol Price Rally reflects a broader crypto market recovery following President Trump’s announcement of a strategic crypto spare.
A short SOL position of approximately $38 million has been settled over the past 24 hours.
Sol’s classic tech patterns paint bullish targets over $260.
Sol Price rises along with the crypto market
Bullish sentiment was not exclusive to Solana as Crypto prices followed President Trump’s orders to establish a US strategic crypto sanctuary, including Solana, XRP (XRP) and Cardano (ADA).
Key Points:
Bitcoin (BTC) won 7% on the last day to trade more than $91,800 at the time of writing.
Ether (ETH) has traded over $2,360, up over 6.6% in the last 24 hours.
Top Cap Cryptocurrency 24-hour performance: Source: coin360
XRP and ADA recorded significant profits, up 16% and 64% over the past 24 hours.
Total crypto market capitalization has increased 7% to $3.03 trillion over the past 24 hours.
Sol Price jumped after the announcement on March 2 that President Trump will become part of the US strategic crypto sanctuary alongside XRP and ADA.
Key Points:
This followed the initial executive order on January 23, which directed the working group to explore the national digital assets stockpile.
Trump’s custody stance, in stark contrast to the Biden administration’s regulatory crackdown, has strengthened investors’ trust in the crypto industry.
While on the campaign trail, Trump has pledged to make the United States the “crypto capital of the world.”
This suggests a policy shift in which Solana justifies and institutionalizes crypto assets designated as strategic assets.
Large short liquidation will increase the price of Sol
According to Coinglass data, Solana’s bullishness on March 3 will be accompanied by a massive liquidation in the derivatives market.
Crypto Futures Market has witnessed more than $931 million in leveraged positions over the past 24 hours, with $555 million being a short liquidation.
The short SOL position, over $38.3 million, was settled against a $34 million liquidation at the same time.
Total crypto liquidation. Source: Coinglass
Once a short position is settled, bearish traders are forced to sell their positions.
This increases tailwinds and increases prices.
Related: XRP, ADA, Sol Go Parabolic Trump US Crypto Reserve Post: Will the other Altcoins continue?
Additionally, Sol Price rally will involve a recovery in funding rates.
SOL funding rate performance. Source: Coinglass
Can Sol Price perform a V-shaped recovery for $260?
Sol’s prices are to show more benefits by drawing potential V-shaped recovery patterns on daily charts.
Key Points:
V-shaped recovery is a bullish pattern that forms when assets rise sharply after a sharp decline.
It’s complete when the price moves to the resistance above the V layer, also known as the neckline.
Sol Price Action from January 19th appears to be developing similar chart formations, as shown in the chart below.
Prices are currently below the key supply demand level. For $184, the 200-day Simple Moving Average (SMA) is between $200-$206, with 100-day SMA and 50-day SMA.
This suggests that the Bulls will need to push SOL above these levels for $245 for a potential retest of resistance.
At higher than that, the next logical move is the general chart pattern neckline for $265.
This represents a 68% increase from the current price.
SOL/USD daily chart. Source: CointeLegraph/TradingView
After yesterday’s SOL price rally, independent analyst Grimm believes his next short-term target will be between $205 and $220.
Solana printed bullish confirmations every day
What I think… Short term… $205- $220 is where you see turbulence along the way
Rejection and acceptance of price action gives us more insight into where we go after that, but I tend to believe it will…pic.twitter.com/ghldipesdd
– Grimm🥀 (@grimdegen) March 2, 2025
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
