Why Is Solana Price Rising? An Analysis of the Reasons

- Solana Price Surge Tied to Trump Advisor Appointment - Meme Coin Boom Boosts Demand for SOL Tokens [Unblock Media] The recent rise in Solana's price can be attributed to several factors. The most notable is Donald Trump appointing David Sacks as an advisor on AI and cryptocurrency policy. David Sacks is known as an early investor in Solana, and his appointment has been interpreted by investors as a positive signal for Solana's future value. According to CoinDesk, Sacks' appointment has increased confidence in Solana, particularly raising expectations for the approval of a spot ETF. This could further heighten the interest of institutional investors in Solana. Additionally, the recent meme coin boom has played a significant role in the price increase of Solana. Key meme coins on the Solana network such as Dogwifhat, Bonk, and Peanut the Squirrel have seen price increases between 4.5% and 7.5% in the past 24 hours. Data from Dune Analytics shows a clear correlation between the record on-chain activity in November and the rise in SOL's value. For instance, over 4.32 million meme coin projects issued through the Pumphun platform generated about 1.61 million SOL (approximately $383 million) in revenue. From a technical analysis perspective, Solana's price increase is also seen positively. The current rise is a rebound from the lower trendline support within an ascending triangle pattern. This pattern usually indicates that prices move within a range before a significant breakout either upwards or downwards. In this pattern, if the price breaks through the upper trendline, it is likely to rise to a level equivalent to the height of the triangle, which for Solana is roughly $65. However, if it fails to break the upper trendline, the price may correct or test the lower support line again. According to AMB Crypto, if the upward trend fails, the price could fall as low as $200. Furthermore, Bloomberg reports that the approval process for a Solana-based ETF requires additional market review and potential changes in regulatory attitudes. Although the approval process for cryptocurrency ETFs has recently accelerated, the approval for a Solana-based ETF remains uncertain.