Solana (SOL) appears to be turning bullish, rising in the green zone for almost all time frames. According to CoinGecko data, SOL price rose 2.8% in the past 24 hours, 10.1% in the last week, 14.6% on the 14-day chart, and 1.5% month-on-month. SOL’s rise came amid a larger market correction that saw Bitcoin (BTC) reach $94,000 before falling to the $90,000 price level. Let’s take a look at why Solana (SOL) is experiencing a price increase and whether that price increase will continue.
What’s behind Solana’s price hike?
The price increase in Solana (SOL) may be due to the soaring price of stablecoins. According to data from Artemis Terminal, the supply of stablecoins on the SOL network has increased by more than $900 million. This development may have caused the price of SOL to soar.
Solana (SOL) is also experiencing strong on-chain growth due to a surge in liquidity. Additionally, several ETFs were launched in this asset last year. ETF momentum has been slowly building in recent days.
Solana (SOL)’s price increase is commendable, but it’s unclear whether this increase can be sustained. The larger cryptocurrency market is showing signs of consolidating around current levels. Bitcoin (BTC) seems to be settling at around $90,000. Other assets are also showing signs of slowing. Given lackluster market conditions, Solana (SOL) could face a price correction or enter a consolidation phase.
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However, the crypto market could see some positive price movements later this month. The US is expected to pass a bill to promote cryptocurrencies within the next few weeks. This move could lead to an increase in investor sentiment. Such a scenario could lead to an overall market rally. In such a situation, Solana (SOL) could cross the $150 mark.