#MarketPullback #CryptoStrategies Solana (SOL) has faced a significant downturn, but its recovery potential remains strong. Here are four key reasons why SOL could regain bullish momentum and push back toward the $180 level.
1. Revival in Onchain Activity
SOL's price decline was accompanied by a drop in onchain activity across DeFi, NFT marketplaces, and liquid staking. A resurgence in transaction volumes and user engagement could drive demand for SOL, boosting its value.
2. Increased Leverage Demand
SOL perpetual futures have seen negative funding rates, indicating weak interest from leveraged traders. A shift in sentiment, possibly triggered by major developments like a Solana spot ETF approval, could lead to a short-covering rally and price recovery.
3. Mitigation of MEV Bot Influence
Concerns over market manipulation by MEV bots have weighed on SOLās reputation. Addressing these issues and improving trading fairness could restore investor confidence, leading to increased adoption.
4. Potential Investment from Trump-Linked Financial Entities
Despite the launch of the Trump (TRUMP) memecoin on Solana, World Liberty Financial has not invested in SOL. A shift in investment strategies favoring Solana could act as a catalyst for price appreciation.
As the broader crypto market rebounds, SOL has the potential to follow suit, making a return to $180 a realistic target.
$SOL