Solana Price Breaks Higher, Eyes $260 ATH Retest – Can SOL Hit $1,000?

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Michael Davis

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Michael Davis

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Crypto market analyst & on-chain data enthusiast. Breaking down trends, narratives & cycles in BTC, alts, and macro. 🧠 Deep dives, smart money moves & alpha for the coming bull run. Stay ahead of...

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January 3, 2025

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The Solana (SOL) price has been charging higher since the start of 2025, bolstered by a broader rally in crypto markets, positive technical developments, and even headlines on Friday suggesting the Solana blockchain has already achieved quantum resistance.

Last around $217, the Solana price has now broken above its downtrend from its mid-November highs.

If it can also get above its 50DMA at $220, the door is open for a swift push higher towards $260.

Crypto markets are likely to retain positive momentum ahead of incoming pro-crypto US President Donald Trump’s arrival in the White House on January 20th.

The Trump administration is the most pro-crypto in history, and looks set to kickstart a new golden era for the US crypto industry and broader markets.

That’s a complete 180 swivel from the outgoing Biden administration, which, a long with its anti-crypto allies in the SEC, have done everything they can to harm the industry and crypto markets.

The Solana price is likely to remain heavily bid on any dips in the coming weeks as investors anticipate a bumper year of growth for crypto markets in 2025.

Things could really go into overdrive if the Trump administration and Congress do push hard for the establishment of a strategic Bitcoin reserve, which would lift the entire crypto market.

How High Could the Solana Price Go in 2025?

As one of the leading layer-1 crypto protocols, Solana price risks remain heavily tilted towards further gains in 2025.

In 2021, Solana’s best year so far since its 2020 launch, Solana saw a stunning more than 170x rally.

Having already gained over 25x from its 2022 lows around $8 and reached a market cap of last around $104 billion, per CoinMarketCap, Solana is unlikely to match its 2021 rally in 2025.

That said, Solana could definitely still post gains in the 4-5x region and hit the psychologically important $1000 level before this bull market is over.

That might seem overly optimistic, but let’s imagine that the US does kickstart a global race to accumulate BTC via announcing a strategic reserve.

That could send the BTC price at least 3x higher versus its current levels. And thanks to its higher beta to risk appetite, the Solana price could also see substantial exponential gains.

What Are the Risks to the Bull Thesis?

It’s always good to take a moment to consider the risks to the bullish investment thesis for any asset.

In Solana’s case, investors must consider the same risks that could negatively impact the entire crypto market.

The Fed is one risk. In December, their more hawkish-than-expected policy announcement caused a drop in risk assets, including Solana.

As the US economy motors ahead in 2025, the case for further interest cuts, or any liquidity easing for that matter, is very weak right now.

So anyone expecting a flood of stimulus like in 2020/2021 to power markets higher is likely to be left wanting.

And in the scenario that the Fed needs to start raising interest rates again to deal with an overly hot economy, that would be a serious shock to the market.

Elsewhere, what if the incoming administration fails to live up to the hype, failing to establish a strategic Bitcoin reserve or generally be as pro-crypto as markets are currently expecting them to be.

That could be crushing to a market that has rallied hard since Trump’s election victory on hopes for a much brighter future.

But the bulls will be hoping that none of this comes to pass. And if not, its ought to be a very good year for the Solana price.

Still priced only just above $220, Solana is a great candidate for best crypto to buy right now.