Solana (SOL) price continues to move sideways, slightly below the wider market after sentiments weakened. The asset traded below major altcoins and failed to register its usual astronomical gains. However, bulls remain optimistic that the past couple of days will be followed by an uptick, taking it past current resistance levels.
Institutional adoption remains a major catalyst for the expected breakout as their activities have led to huge ecosystem transactions. Meanwhile, bulls have pointed to similar inflows in Bitcoin as a major market driver this year.
Reasons For A SOL Bull Run
Solana, an asset that outpaced the market, could be set for a major swing amid sideways trading. First, institutional investors have ramped up efforts for ETFs in the United States. On Nov 21, Cboe BZX Exchange submitted several filings to list the asset’s spot ETF products. Firms that submitted 19b-4 filings include VanEck, Canary Capital, 21Shares, and Bitwise.
A major reason for the jump was the filing around the time of Gary Gensler’s announced resignation. The present administration’s stance on crypto limited institutional drive for years before approving spot Bitcoin ETFs on Jan 11. Solana products have also recorded consecutive inflows.
Furthermore, Solana gained significant traction following initial speculations of Gensler’s resignation. Other crypto assets targeted by the SEC also saw similar inflows, with bulls on course to new highs. Traders look to the new confidence in the market as a catalyst for a surge.
Solana Meme Coins To Boost Transactions
Solana-based meme coins are picking up the pace in terms of volume, although total figures are still in the red zone. Solana tokens were key in the meme coin frenzy in Q1 2024 as assets spiked to 100X gains. At press time, BONK still holds on to weekly gains, although daily bearish sentiment has wiped off gains.
Meme coins are volatile assets that make rapid swings based on wider market directions. Bullish projections for Bitcoin, as it circles $98K, could create resistance for meme coins. The market leader moving past $100K will be a bullish signal for an upward drive.
“Memes are getting hammered. $pnut down 70%. If this is your first cycle, let me give you some advice. Stop holding memecoins while Solana is in price discovery lol Take profit and hold your sol,” crypto enthusiast Mezoteric wrote on X.
