The long-awaited political trigger for SOL is coming – where will SOL go?
Investors shifted their attention from SOL to memecoins.
According to a crypto hedge fund, SOL’s woes may ease before the U.S. election.
Solana [SOL] has been range-bound between $160 and $120 since August.
However, Quinn Thompson, founder of crypto hedge fund Lekker Capital, believes a strong breakout is likely to occur.
According to Thompson, Solana has been languishing as crypto-native businesses shift their attention to the memecoin rally.
“While most of the memecoin activity is in SOL, this is not a huge positive for the SOL token price because crypto native capital that would normally buy SOL or other altcoins is buying memes.”
Potential impact of the US election
Thompson added that an increased chance of Trump winning the US election could drive strong gains for Bitcoin [BTC] and ultimately boost SOL.
“This will change soon as BTC regains momentum and starts to gain popularity again. This will have the biggest knock-on effect on SOL and ultimately SOLETH.”
On the prediction site Polymarket, Trump’s lead over Kamala has been growing in October. This reinforces Thompson’s bullish outlook for BTC and SOL. Currently, speculators predict a 54% chance of Trump winning, while Harris’s chance of winning is 45.3%.
Nonetheless, positive sentiment for altcoins hit a nine-month high, according to data from Santiment. This highlights speculators’ growing confidence in SOL’s upside potential.
However, Market Prophit data has a mixed sentiment analysis for the SOL market overall.
At the time of writing, sentiment from both the general public and smart money is negative. This means that short-term caution will intensify as SOL’s rally approaches key resistance levels.
At press time, SOL’s latest rally hit the 200-day moving average (MA) at $151, with another overhead resistance at the mid-range resistance of $160. It must break the $160 barrier to rally towards $180.
