Here’s why Solana price will rebound to $400 in 2025

Solana price staged a strong comeback in the last two weeks, defying the gloomy projections by many analysts who expected it to crumble to $50. SOL token was trading at $150 on Monday morning, up by almost 60% from the lowest level this year. This article explains the top 3 reasons why the SOL price may eventually surge to $400 in the near term.

SOL ETF approval odds are high

The first main reason why Solana price may surge to over $400 this year is that the market anticipates that the Securities and Exchange Commission (SEC) will approve numerous spot Solana ETF later this year. Companies like VanEck, 21Shares, Canary, Bitwise, Grayscale, and Franklin Templeton have all applied for a spot SOL ETF. 

Polymarket odds for these approvals have jumped to over 70%, raising the probability that this will happen soon. This will be a big thing for Solana as the SEC had rejected these ETFs last year, citing the fact that they are unregistered securities.

JPMorgan analysts anticipate that these ETFs will attract over $6 billion in inflows in the first 12 months. If this is accurate, it will make them bigger than Ethereum, which have had cumulative inflows of less than $2.5 billion.

Most importantly, the SEC, under Paul Atkins, will likely approve these ETFs to have a staking feature, allowing Wall Street investors to generate a yield. 

Solana meme coins are rebounding

The other main reason why the SOL price may surge soon is that meme coins in its ecosystem have started to bounce back, a sign that the sector is not dead. It is also a sign that these meme tokens will rebound in good market conditions. 

The total market valuation of all Solana meme tokens has surpassed $10.6 billion, up from this month’s low of $6 billion. The top players in the ecosystem are Official Trump (TRUMP), which has jumped by 73% in the last seven days. This rebound happened after Donald Trump sent invitations to the top holders for an exclusive event at his golf course.

Bonk price has soared by over 55% in the last seven days, while Fartcoin, Pudgy Penguins, Dogwifhat, and Popcat have all jumped by double digits in the same period.

DEX networks are doing well

The surge in Solana meme coins has led to a strong recovery of decentralized exchanges (DEX) in the network. Data compiled by DeFi Llama shows that the total volume handled by these protocols over the last seven days increased by 31% to exceed $20 billion. This increase led to a monthly volume of over $64 billion. 

Rising DEX volume has been a positive thing for Solana as it has led to higher fees in the network. Solana has generated over $400 million in fees this year, making it the sixth most profitable player in the crypto industry. 

Also, it has led to a surge in stablecoins in the network. These coins are now valued at over $13 billion, a record level.

Solana price technical analysis

The weekly chart shows that the SOL price bottomed at $94 earlier this month and has now rebounded to $150. It has moved above the 25-period Exponential Moving Average (EMA), a sign that bulls are in control. 

The coin formed a falling wedge on the daily chart. This wedge was part of the formation of the handle section of the cup and handle pattern, a popular bullish continuation sign. 

Therefore, the coin will likely continue rising and move above the upper side of the cup. If this happens, the next level to watch will be at $400. This target will take time to happen because it is in the weekly chart.