Solana (SOL) Continues Impressive Price Recovery, Nears $260 as Network Activity Spikes

Solana (SOL) continues its impressive price recovery, aligning with broader crypto market gains. Bitcoin (BTC) trading above $105,000 has set the stage for altcoins like SOL

Solana (SOL) price continues to rally amid broader crypto market gains and rising network activity. The token surged 9% in the last 24 hours and 35% over the past week, reaching $257 at the time of writing.

Rising Network Activity Fuels SOL Momentum

Solana blockchain activity surged to record highs recently, underscoring its growing adoption. Transaction volumes spiked, driven by the recent excitement surrounding Official TRUMP (TRUMP) and Official Melania Meme (MELANIA) tokens.

According to data from Solscan, daily transactions jumped from 45,881 on Jan. 17 to record highs of 66,000 on Jan. 19. This surge in activity highlights Solana's utility and role in facilitating a wide range of transactions.

DeFiLlama data showed that Solana's total value locked (TVL) soared to $12 billion on Jan. 20. While it slightly retraced to $11.8 billion by Jan. 22, the metric still signaled a substantial 212% increase over the past week, indicating strong interest in Solana-based decentralized applications (dApps).

Anticipation of a Spot Solana ETF Boosts Optimism

Anticipation over the potential approval of a spot Solana exchange-traded fund (ETF) is injecting bullish sentiment into the market. Predictions from Polymarket show a 90% chance of ETF approval in 2025, stoking investor optimism.

Analysts at JPMorgan estimated that such an ETF could attract $3 billion to $6 billion in capital inflows, which could propel SOL's price toward $500 or higher.

Several applications from major asset managers, including Grayscale, VanEck, and 21Shares, are pending approval by the U.S. Securities and Exchange Commission (SEC).

Among these, crypto market participants are paying close attention to the application filed by REX Shares, given its vast experience in the industry, according to analysts like Eric Balchunas.

Technical Indicators Point to $500+ Target

A review of SOL's technical setup further supports the bullish narrative. Notably, a bull flag breakout above $180, which was confirmed in Nov. 2024, establishes a potential target around $580.

Recent rebounds off this level also highlight its importance as a pivotal zone for setting the stage for further gains.

Chart: TradingView. Analysis by CoinChapter

Solana price stood poised for another breakout above $260, which could propel the token toward $300 and higher. Crypto trader and analyst Jelle also noted that “key levels turned into support,” setting SOL up for more upside.

However, Jelle also cautioned that “we might see some violent moves” in the near term, underscoring the potential for short-term volatility before the next leg higher.

Solana's combination of increasing network activity, growing adoption, and ETF anticipation could continue to drive the token toward new highs, keeping investors' attention on its evolving narrative.