cryptopolitan.com
It’s only a few days until Donald Trump’s inauguration as the 47th POTUS. The crypto market looks forward to the next four years under DJT, who favors digital assets. One proposal has already sparked debate: the idea of an America-first strategic crypto reserve.
Apart from Bitcoin, other crypto assets have made the list, including Solana and XRP.
Is this overconfidence? Not really. Creating a Bitcoin-focused strategic reserve was one of Trump’s primary crypto-related campaign promises.
According to the New York Post, industry leaders are “optimistic” about a succession of prospective policy reversals that are intended to legitimize crypto in light of Donald Trump’s ascension.
These officials also note that this could hinder attempts to popularize Bitcoin. According to industry observers, Trump has already established a new standard for the industry.
In response, crypto coins tied to the digital asset reserve have spiked double digits in the last 24 hours.
Solana’s price has spiked and now sits above $214. This is a 4.5% increase from an hour ago and a 15.2% increase in 24 hours. In addition, in the last 24 hours, the total volume of Solana traded has increased 138%.
SOL’s market performance
Solana, often dubbed the Ethereum killer, is living up to the analysts’ observations. According to on-chain data, SOL is $50 away from its all-time high of $263, achieved in November 2024, when Bitcoin initially hit the $90,000 price level.
Notably, Solana had been building momentum before the Trump-induced rally. SOL and all other altcoins have experienced significant price increases in the last two days. However, not all coins are enjoying price spikes.
On-chain data shows that AI-focused tokes have suffered market declines. This follows Biden’s executive order on AI chip exports.
The Relative Strength Index (RSI) is currently at 37.70 when examining the technical indicators. This places it in a neutral position. It indicates that it is not currently overbought or oversold. It is indicative of a relatively balanced market sentiment. This is a favorable environment for consistent growth.
In addition, the MACD, which is currently reading -5.18, is an intriguing indicator. This indicates a “buy” signal, suggesting that some upward momentum could be developing for SOL.
The 200-day moving average is currently at $172.92, which is significantly lower than the current price. This shows a strong long-term upward trend. Conversely, the 50-day moving average is situated at $211.51, which is just above the current trading price of SOL.
This could serve as a temporary resistance level, which would indicate that the price may encounter some difficulties in overcoming it.
The anticipated end to debanking signals
According to the New York Post, the promise of immediate executive orders could facilitate the establishment of a Bitcoin reserve. This will also put an end to the contentious debanking practices. Here, banks refuse to do business with clients who are in the crypto trading business.
The crypto industry also anticipates the end of debanking so that traders can live up to Satoshi Nakamoto’s true promise. This is considered essential for the industry’s revival and survival, as it would allow banks to invest in digital assets.
In the previous administration, the crypto sector encountered regulatory “harassment,” as several individuals have put it. The aim of the operation known as “Operation Chokepoint 2.0” was to completely kick out crypto from the US economy.
Sadly, it had a significant effect, resulting in the industry being constrained and entrepreneurs struggling to establish a foothold.
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