- Investors have shifted their attention from SOL to memecoins.
- SOL’s struggle could ease ahead of the US elections, according to a crypto hedge fund.
Since August, Solana (SOL) has been limited to the $160 to $120 range.
However, Quinn Thompson, founder of crypto hedge fund Lekker Capital, believes a strong breakout could likely occur.
According to Thompson, Solana has been muted as crypto natives have focused on memecoin rally.
“While most memecoin activity takes place on SOL, this has not been a huge boon to the price of the SOL token, as crypto-native capital that would typically buy SOL or other alts is buying memes .”
Potential impact of the US elections
Thompson added that the growing chances of Trump winning the American elections could lead a strong Bitcoin (BTC) uptrend and possibly boost SOL.
“This will change soon as BTC regains its mojo and starts trending again. This will then have the greatest ripple effect for SOL and cause the eventual breakout of SOLETH.
On the predictions site PolymarketTrump increasingly maintained his lead over Kamala in October. This reinforced Thompson’s bullish outlook on BTC and SOL. Currently, speculators estimate Trump’s chances of victory at 54% compared to Harris’s 45.3%.
Source: Polymarché
That saidAccording to Santiment data, positive altcoin sentiment reached its highest level in 9 months. This underlines the growing conviction of speculators SOIL upside down potential.
However, on a global basis, Market Prophet data had a different sentiment analysis of the SOL market.
At the time of writing, public and smart money sentiments were negative. This implied increased caution in the short term as SOL’s rally neared key resistance levels.
Source: Market Prophet
At press time, SOL’s latest rally reached the 200-day MA (moving average) at $151, and another additional hurdle was expected at the average resistance at $160. It was necessary to cross the obstacle of 160 dollars for the recovery to extend to 180 dollars.
Source: SOL/USDT, TradingView
