Why is Solana (SOL) price up today?

Solana (SOL) price is up today, buoyed by a significant recovery in the broader cryptocurrency market. SOL’s rebound came as President Trump announced that Solana would be included in the Strategic Crypto Reserve.

Data from Cointelegraph Markets Pro and TradingView shows SOL’s price is trading at around $162, up more than 15% in the last 24 hours and 28% from its local low of around $125 on Feb. 28.

Several factors driving the SOL price up today, including:

SOL price rally mirrors the broader crypto market recovery following President Trump’s Strategic Crypto Reserve announcement.

Approximately $38 million short SOL positions liquidated over the last 24 hours. 

SOL’s classic technical pattern paints a bullish target above $260.

SOL price rises with the crypto market

The bullish sentiment was not exclusive to Solana as crypto prices followed President Trump’s directive to establish a US Strategic Crypto Reserve that includes Solana, XRP (XRP) and Cardano (ADA).

Key points:

Bitcoin (BTC) gained 7% over the last day to trade above $91,800 at the time of writing.

Ether (ETH) has rallied more than 6.6% over the last 24 hours to trade just above $2,360. 

XRP and ADA posted significant gains, rising by 16% and 64% over the last 24 hours.

The total crypto market cap has increased by 7% over the last 24 hours to $3.03 trillion.

SOL price jumped after President Trump’s announcement on March 2 that SOL, alongside XRP and ADA, will be part of a US Strategic Crypto Reserve.

Key points:

This followed an initial executive order on Jan. 23 directing a working group to explore a national digital asset stockpile.

Trump’s pro-crypto stance, a stark contrast to the Biden administration’s regulatory crackdowns, has bolstered investor confidence in the crypto industry. 

While on the campaign trail, Trump promised to make the US the “Crypto Capital of the World.”

This suggests a policy shift that legitimizes and institutionalizes crypto assets, with Solana named as a strategic asset. 

Massive short liquidations push SOL prices higher

Solana’s bullishness on March 3 is accompanied by massive liquidations in the derivatives market, according to data from CoinGlass. 

The crypto futures market witnessed the liquidation of over $931 million in leveraged positions over the last 24 hours, with $550.5 million being short liquidations.

Over $38.3 million short SOL positions have been liquidated against $34 million long liquidations over the same period. 

When short positions are liquidated, bearish traders are forced to sell their positions.

This adds to the tailwinds, causing the price to rise even higher.

Related: XRP, ADA, SOL go parabolic after Trump US crypto reserve post: Will other altcoins follow?

Furthermore, the rally in SOL price accompanies a recovery in its funding rates.

Can SOL price stage a V-shaped recovery to $260?

SOL’s price is painting a potential V-shaped recovery pattern on the daily chart, hinting at more upside. 

Key points:

A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. 

It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.

SOL price action since Jan. 19 appears to be developing a similar chart formation as shown in the chart below. 

The price now trades below key supply-demand levels: $184, where the 200-day simple moving average (SMA) is, and between $200 and $206, which are also the 100-day SMA and 50-day SMA.

This suggests that bulls need to push SOL above these levels for a potential retest of resistance at $245.

Higher than that, the next logical move would be the neckline of the prevailing chart pattern at $265.

This would represent a 68% uptick from the current price.

After yesterday’s rally in SOL’s price, independent analyst Grim believes the next short-term target lies between $205 and $220. 

Solana printed a bullish confirmation on the Daily

What I think.. short term.. $205-$220 is where I see it going with some turbulence on the way up

Rejection and Acceptance of price action will give me more insight where we go after that, but I am inclined to believe it will… pic.twitter.com/GhldIpEsDd

— Grim 🥀 (@GrimDegen) March 2, 2025

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.