Solana (SOL) trading volume has increased significantly in response to the results of the US presidential election on November 5, 2024. Driven by news of Donald Trump’s election victory, Solana’s trading volume reached a three-month high of $8.33 billion, sending the SOL price up by 11%. At the time of writing, Solana’s price has reached $183.84.
Trump’s Election Victory Increases Interest
Before the election results were announced, Solana’s on-chain volume was below $3 billion on November 5. However, following the news of Trump’s victory, this volume increased by 150% to $8 billion, indicating the increased interest in Solana and improved market sentiment.
When a cryptocurrency’s price increases along with its volume, it’s usually a sign that the rally is strong. However, when volume decreases, it could be a sign that the price could be pulling back. Solana’s price is currently increasing along with its volume, suggesting that the price has the potential to rise further.
Open Position and Bull Flag Pattern
Along with Solana’s trading volume, the Open Interest (OI) rate has also increased significantly, reaching $2.51 billion, its highest level since October 30. A high OI indicates continued strong market momentum and strong investor participation behind the current trend, reinforcing the likelihood that the price will continue to rise.
On the daily chart, Solana formed a bull flag pattern. This pattern usually indicates a strong uptrend followed by a short period of consolidation, after which we expect the price to rise further. Following the bull flag pattern, the SOL price broke through the upper trendline of the flag, which led to a large rally.
If this trend continues, Solana’s price could surpass the $193.90 resistance. If there is a further strong rally, SOL could approach the all-time high of $260. However, if the price breaks below the $161.81 level and volume starts to decline, it could invalidate the current uptrend. In such a case, SOL’s price could drop to $141.98.
Conclusion
Solana has made a remarkable rise with Trump’s election victory and increasing trading volume. High open interest and a bull flag formation suggest that the price could rise further. However, if the price drops below $161.81, this uptrend could end and Solana could fall to lower levels. Therefore, careful monitoring will be important for investors.