After the passing of the Genius Crypto Act, prices including Solana Sol have risen in some cryptocurrencies. Analysts are bullish in the crypto market in August, hoping that the coin will continue to skyrocket in value. Currently trading at $175, Sol has been considering challenging a $200 resistance over the last few months. After a temporary touch on $203 earlier this week, the assets have been revised towards the $170 mark. Could approval of the Genius Act be a catalyst for Sol to ultimately break its downward pattern?
Passing the bill could spark a fire under Solana Sol, sending it to a new high, according to Sean Farrell, analyst at FundStrat. Essentially, genius behaviour essentially favors the Stablecoin domain. This law will help streamline the role of stubcoins in their current financial structure and regime. Farrell points out that the issuance and activity of stubcoin is likely to cause a surge in activity later in the year. This could likely lead to a continuous rise in Ethereum prices and could lift altcoins, including Solana.
“I think one of the most bullish things about Solana is that ETH gives a higher rating,” explains Farrell. “Intuitively, all of this (layer-1) fills up again from ETH. So, if ETH continues to show off outperformance, I think we should expect Sol to spend more time showing beta on it and offer a rather persuasive risk award.” The analyst also adds that the passing of the SOL ETF could trigger a rally to this year’s new high. “I’m looking forward to a Solana ETF someday this year,” he said. “I think we’re probably going to staking with them.”
“Our loose price target was about $450 at the beginning of the year. I think that’s still playing.”
Sol’s performance over the past two and a half years is astronomical. The asset has dipped to under $10 after the collapse of FTX in 2022. Since the second half of 2022, Sol prices have risen by around 2000%. The asset has proven to be one of the most resilient cryptocurrencies on the market.
At this point the market could swing in any direction. Bitcoin (BTC) shows signs that it will enter the integration phase. The original code was dipped at a price level of $116,000, down 1% and 1.6% on daily and weekly charts, respectively. Further revisions from BTC could lead to a larger market decline.