Solana may be preparing for a significant short-term price surge, as buyers are eyeing a retest of the record high near $300 earlier this year, double the current level.
The price of Solana has now risen over 55% since the April low of around $95, creating a series of higher lows and breaking above the 21 DMA and 50 DMA in the process.
The recovery on Wednesday at the 21DMA confirms the bullish trend and indicates a high likelihood of a short-term breakout above last week's high of $157.
The Solana rally is occurring against the backdrop of risk assets recovering strongly in recent weeks, with Bitcoin rebounding to $100,000 and major U.S. stock indices reversing much of the decline from February's record highs.
The market seems to be anticipating a less aggressive trade policy from U.S. President Donald Trump.
Current market sentiment seems to rely more on hope than reality, and the recovery in sentiment (so far) is also overlooking the recession in U.S. economic indicators suggesting a downturn may be imminent.
And that signals good things for Solana, which may also benefit from the ETF hype in the coming months.
Solana Price Prediction – Will It Retest All-Time Highs This Summer?
Both technical and fundamental market factors are pointing towards a price surge in the coming weeks.
If U.S. economic data can hold steady, this price rally could even extend for several more months.
This could pave the way for Solana's price to rise again to test the record high of 2025 as traders also rush in ahead of the potential approval of spot Solana ETFs in the U.S. this summer.
According to Bloomberg Intelligence, spot Solana ETFs now have a 90% chance of being approved, with six asset management companies waiting to launch the product.
The approval of the ETF would open the door to a new wave of capital that the Solana market has not yet benefited from.
With other ETFs for XRP and Dogecoin also likely to be approved, a new alternative cryptocurrency season may be on the horizon.
Yes, given the U.S. economy is heavily impacted by trade instability and the Federal Reserve is reluctant to loosen monetary policy due to concerns about rising inflation, now may not be the best time to bet on an altcoin surge like in 2021.
Certainly, the price of Solana could retest the 2025 high of nearly $300 if it breaks through the resistance in the $170-$180 range.
But a new surge towards, say, $500 would require a robust macroeconomic backdrop. Specifically, it may require a combination of 1) a strong U.S. economy and a globally accelerating economy and 2) a significant amount of liquidity injections from major central banks around the world. This, combined with ETF capital flows, would be the catalyst to drive Solana's price to $500.
