Why is Solana (SOL) Price Up Today?

Solana’s price has surged following Joe Biden’s withdrawal from the presidential race, boosting Donald Trump’s odds, who is seen as pro-crypto. This political shift, along with other factors, has positively impacted Solana.

Points

• Solana’s price increased by over 5.5% in the past 24 hours, reaching $185.
• Joe Biden’s withdrawal from the presidential race boosted Trump’s odds.
• Trump’s potential pro-crypto policies are driving market sentiment.
• Solana ETF prospects could rise with a new SEC administration.
• Positive funding rates and open interest indicate bullish sentiment.

Solana SOLUSD continues its upward trend, with prices rising over 5.5% in the past 24 hours, reaching $185—its highest level in two months as of July 22. This surge follows the announcement of Joe Biden’s withdrawal from the presidential race, which has increased the winning odds of Donald Trump, a candidate perceived as pro-crypto.

Investor sentiment is optimistic that a Trump administration could end the current stringent crypto regulations imposed under the Biden administration. This political shift has driven a 3.5% increase in Solana’s price, alongside a collective rise of 3.22% in the broader crypto market, including Bitcoin BTCUSD.

In addition to political developments, market analysts believe that Trump’s reelection could lead to the early resignation of SEC Chair Gary Gensler, known for his anti-crypto stance. Such a change could pave the way for the approval of a Spot Solana exchange-traded fund （ETF） in the United States, boosting Solana’s prospects further.

Solana’s gains are also reflected in the open interest of its futures contracts and positive funding rates. As of July 22, the number of Solana’s unsettled futures contracts reached $2.81 billion, its highest since April. The positive funding rates indicate that traders are willing to pay a premium to maintain long positions, reflecting a bullish sentiment toward Solana.

Technically, Solana’s price is breaking out of a descending triangle range, a bullish continuation pattern. This pattern features falling trendline resistance and a

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  horizontal support line, typically resolving when the price breaks above the upper trendline. As of July 22, Solana’s price is trading above this upper trendline, aiming for a potential rise toward $275. However, this breakout has been accompanied by declining daily trading volumes, indicating muted enthusiasm from traders.

For the bullish momentum to be validated, Solana needs to decisively break above its interim resistance area defined by the $185-200 range. If it fails to do so, the price may retreat towards the triangle’s upper trendline around $155.