Solana (SOL) has recently hit a new record high, driven by massive interest in meme coins launched on the network by President Donald Trump and his wife, Melania.
Notably, Solana has emerged as the indirect beneficiary of the TRUMP and MELANIA coins, resulting in the decentralized finance (DeFi) asset rallying to a new all-time high of about $295.
This momentum was amplified by surging trading volumes for SOL as the network’s decentralized exchange (DEX) hit a record high of $27 billion.
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The popularity of the TRUMP and MELANIA meme coins played a key role in driving this growth, as investors first needed to acquire SOL to purchase these tokens. This surge occurred before the meme coins were listed on major exchanges.
The coins’ sudden rise triggered fear of missing out (FOMO) among retail investors, as some early holders recorded massive profits in a matter of hours.
With Solana having neared the $300 mark, the next few days remain crucial, considering the bullish sentiment likely to engulf the market as Trump prepares for his swearing-in.
AI predicts SOL’s price
To determine how Solana might perform in the short term between January 20 and February 4, Finbold utilized its artificial intelligence (AI) prediction tool, which offered varied insights from multiple models.
The AI tool offered varied price projections for the period, suggesting that the cryptocurrency could trade between $175.30 and $260, with an average projected price of $218.83, reflecting a 12% potential drop from the current trading valuation.
One model, OpenAI’s GPT-4o, suggested that Solana could reach $260, attributing this to the emergence of a golden cross pattern and strong upward momentum underpinned by positive market sentiment.
Conversely, GPT-4o Mini predicted a drop to $175.30, cautioning against potential volatility despite the bullish indicators. The model noted that short-term momentum could weaken, presenting a more cautious outlook.
Meanwhile, Claude 3 Opus forecasted a price of $230, driven by strong technical momentum and alignment between key moving averages.
Another analysis from Grok 2 Vision projected stabilization around $220, suggesting a consolidation phase as the market digests recent volatility, citing steady market conditions and the absence of disruptive news.
Solana price analysis
At press time, Solana was trading at $250.25, marking a 5% drop on the weekly chart. However, the asset has surged by more than 40% over the past week.
Despite the recent pullback, Solana’s bullish sentiment remains intact, as reflected in the Fear & Greed Index, which currently sits at 76, indicating Extreme Greed.
From a technical perspective, Solana’s outlook remains strong. The 50-day simple moving average (SMA) is currently at $211.28, while the 200-day SMA stands at $174.99, confirming the possible continuation of an uptrend.
However, with the Relative Strength Index (RSI) at 69.28, momentum is approaching overbought levels, suggesting a potential short-term consolidation or price correction.
Looking further ahead, longer-term technical patterns indicate that Solana could target an ambitious high of approximately $4,700.
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