Solana price is still on a downward trend, but that could change quickly in early 2025, as the focus on the crypto-friendly Trump administration increases.
Solana (SOL) price is trying to continue its modest recovery on Christmas Day 2025, and it has tried to surpass the 200$SOL level.
The price is up 13% from recent weeks’ lows in the $175 area, but it still has a long way to go before it retests recent highs in the $260 area.
This bounce shouldn’t excite bulls just yet, as chart analysis suggests that Solana price is still stuck in a bearish oscillation around the 21- and 50-day moving averages.
To confirm the end of the downtrend, the price must break the $220 level and rise above it.
It is worth noting that the recent hawkish shift in the Federal Reserve’s policy (which indicates only two rate cuts in 2025) has shaken investor confidence in risk assets in the past week.
Will this lead to Solana price continuing its downward trend? Probably not. Here’s why the price is likely to recover towards its 2024 highs and even rise above them in early 2025.
Solana Price Is Set to Retest $260 Soon, Here’s Why:
As mentioned earlier, the Fed will not cut interest rates significantly in 2025, which is somewhat negative for risk assets. However, there are plenty of other positive grounds for optimism at the moment, so you shouldn’t worry about that.
For example, the US economy continues to perform well. If this continues, it will support risk assets (such as US stocks) going forward, which is positive for the crypto market.
More importantly, the Trump administration and a new US Congress that are pro-crypto are about to take office. Therefore, it is safe to say that the US crypto sector is about to enter a new golden age, which will positively impact all major digital assets as adoption accelerates. Since most major cryptocurrencies have yet to see their bull market prices explode, Solana’s price could soon surge. A price surge above the aforementioned downtrend could be the catalyst for this move.
On a related note, Solana’s fundamentals on the blockchain look very good, with trading volumes, transactions, and total value locked (TVL) all rising strongly, according to DeFi Llama data. Solana’s market cap is around $94 billion, 25% below Ethereum’s.
However, Solana is unlikely to outperform Ethereum this cycle, and the price of ETH could see a significant surge as well; it would not be uncommon to see Solana price rise 4-5x from current levels to match the current market cap of Ethereum.
Future of Solana Coin SOL:
For 2025, Solana is expected to achieve an average price of $206.40, with a projected high of $212.59 and a potential low of $138.29. Buying Solana at the current price of $185.96 would likely yield +11.00% in 2025.
In any case, Solana is a strong candidate to be one of the best cryptocurrencies to buy now, given that its price is down 25% from its November highs.