Solana (SOL) has emerged as one of the top-performing cryptocurrencies of 2024, demonstrating remarkable resilience and potential for further growth. Beginning the year trading at approximately $105, SOL experienced a meteoric rise, surpassing $200 in March. Although it has faced some fluctuations since then, Solana is still up around 40% year-to-date, raising expectations for an even stronger Q4 performance.
Analysts Eye Solana’s Potential Under A Trump Administration
In a recent report, analysts from Standard Chartered highlighted Solana as a standout cryptocurrency that could thrive in the political climate following the November U.S. Presidential election. Geoffrey Kendrick, the global head of digital assets research at the bank, believes that if Republican candidate Donald Trump wins, Solana could outperform both Bitcoin (BTC) and Ethereum (ETH) by 2025.
The report suggests that a more favorable regulatory environment, driven by Trump’s potential policies, will act as a significant catalyst for SOL’s price. Analysts predict that under such conditions, the cryptocurrency could see a five-fold increase by the end of next year. They posit that this bullish scenario for Solana contrasts sharply with a potential future under Kamala Harris, where SOL might lag behind BTC and ETH, even as these leading cryptocurrencies maintain their robust infrastructures and institutional backing.
Mixed Signals from the Market
While political factors could significantly impact SOL’s trajectory, fundamental on-chain metrics present a more nuanced picture. According to data from The Block’s Solana dashboard, the network recorded a staggering 99.76 million new monthly addresses in September, marking an all-time high. However, this growth has not translated into sustained user engagement. Solscan Explorer reports a decline in active wallets over the past three weeks, dropping from a peak of 5.047 million on September 10.
Moreover, new account creations have also seen a downward trend in recent months, signaling a potential waning interest among market participants. This contrasts sharply with the previously surging numbers and raises critical questions about the sustainability of Solana’s address growth.
Adding to the concerns, daily non-vote transactions on the Solana network have also decreased since reaching 46.11 million on July 16. This figure has remained below 40 million since August 4, indicating a slowdown in network activity that could hinder Solana’s growth momentum.
Also Read: Solana ($SOL) Set For A 500% Price Jump By 2025 With 100M Active Users—Will Politics Fuel The Rise?
Technical Analysis – A Potential Breakout Looms
At the time of writing, SOL was trading at $143, having maintained a narrow price range between $120 and $162 since August 5, when it briefly dipped below $110. Analyzing the SOL/USDT chart on TradingView reveals a unique pennant pattern that has been coiling for the past nine months. This technical formation often precedes significant price movements, suggesting that Solana could be gearing up for a breakout in the current quarter.
A Year of Opportunity
With the U.S. election on the horizon, Solana stands at a crossroads. While the potential for massive growth exists—especially if political winds favor a Republican administration—the underlying data presents a more cautious view. Investors should remain vigilant and consider both the political and fundamental indicators as they navigate this dynamic cryptocurrency landscape. As Solana aims to solidify its place among the crypto elite, the coming months will be crucial in determining its trajectory and market standing.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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