Solana is falling, but when will it rise?
2025-01-27
Category: None

Analysis of Solana: Market Perspectives and the Impact of U.S. Legislation
Greetings, this is Ronin. Today, I’m sharing my insights on the current situation surrounding Solana (SOL) in the context of new economic conditions introduced by the administration of Donald Trump. At this point, several fundamental factors can be identified as key market drivers for the next 1.5–2 years.

New Economic Policies and Their Market Impact
One of the most significant decisions made by the Trump administration is the removal of the value-added tax (VAT) on American assets. This measure is designed to boost domestic demand, stimulate economic growth, and attract capital into the U.S. asset market.

For the cryptocurrency market, and particularly for Solana, this policy creates favorable conditions. Reduced tax burdens:

Encourage institutional investors to consider American digital assets.
Increase liquidity on U.S. exchanges, positively impacting trading volumes.
Heighten competition among market participants, leading to more dynamic price movements.
These changes lay a solid fundamental foundation for Solana’s value to grow in the medium and long term.

Solana: Growth Potential
Current Market Situation

Solana is currently in a consolidation phase. The price remains under pressure due to:

Artificial liquidity outflows.
Liquidation of large futures positions, a common practice by exchanges to stabilize their profitability.
At present, technical analysis is not the primary driver of the asset’s movement. Once the market receives additional liquidity and exchanges stabilize their operations, Solana is poised for a significant recovery and further growth.

The Impact of Potential ETF Approval
A major driver for Solana is the speculation surrounding the approval of an ETF linked to Solana. If this comes to fruition:

Solana will see a substantial influx of capital from institutional investors.
Increased demand for the asset will drive its price upward.
While it’s unlikely we’ll see a repeat of 2021, when Solana’s price skyrocketed from $28 to $260, the asset still holds strong growth potential. Catching up to major assets like Binance Coin (BNB) is more than achievable.

Liquidity and Trading Strategy
My futures trading strategy allows me to operate in both directions, but in the long term, the fundamental outlook for growth is clear. On the cryptocurrency market, the classic principle applies: buy when everyone else is selling.

Current Takeaways:

Corrections as Opportunities: Significant price pullbacks, especially those driven by short-term exchange manipulations, present excellent buying opportunities.
Positive Stimuli: Liquidity will inevitably return to the market, and once it does, Solana is likely to demonstrate a strong recovery and upward trajectory.
Conclusion
The changes brought about by the Trump administration’s economic policies offer unique advantages for American assets, including Solana. The removal of VAT and the potential approval of an ETF create solid prospects for strengthening Solana’s market position.

I am confident that in the medium and long term, this asset has significant growth potential. While the market remains in consolidation, I continue to monitor the situation and use corrections as opportunities to increase my positions.

The cryptocurrency market rewards those who can see opportunities in periods of temporary decline. This has been Ronin. See you at the top of the charts! 📈💎