Solana [SOL] has emerged as one of the top-performing digital assets in 2021, with its value soaring from around $105 at the beginning of the year to over $200 by March. Despite experiencing some fluctuations since then, SOL has still managed to maintain a 40% increase year-to-date and could potentially see further growth in the fourth quarter.
An analysis released by experts at Standard Chartered this week highlighted SOL as a cryptocurrency that could thrive if Donald Trump, the Republican candidate, secures victory in the upcoming November U.S. Presidential election.
The team of analysts, led by Geoffrey Kendrick, the head of digital assets research, suggested that Solana might outperform both Bitcoin and Ethereum by the year 2025.
Supporting this notion, the report advocated for a potential fivefold surge in SOL’s price by the conclusion of the following year. The analysts pointed towards a more favorable regulatory environment, which would entail more cryptocurrency-friendly policies under a Trump administration, as one of the main factors driving this optimism.
Even though the report anticipates that cryptocurrencies will remain resilient irrespective of the election outcome, it mentioned that under a scenario where Kamala Harris becomes the U.S. President, SOL might lag behind BTC and ETH in the spot market performance.
The analysts reasoned that the two primary digital assets are better poised to withstand stricter regulations due to their established infrastructure and widespread institutional acceptance.
Evaluating the Fundamentals
While ongoing political events could significantly influence SOL’s price trajectory, the on-chain data does not entirely align with the bullish outlook.
Information from The Block’s Solana dashboard revealed that the Solana network observed a remarkable 99.76 million new monthly addresses in September, reaching a record peak.
However, according to data from Solscan Explorer, the number of active wallets on the network has decreased over the last three weeks, dropping from the peak of 5.047 million on September 10.
Moreover, there has been a decline in new accounts over the past two months, indicating a diminishing interest among market participants which raises concerns regarding the sustainability of the recent surge in addresses.
Furthermore, non-vote transactions on the Solana network have been on the decline since hitting 46.11 million on July 16, consistently remaining below 40 million since August 4. This downward trend is also evident in the total monthly non-vote transactions, signifying a slowdown in network activity despite the rise in the number of addresses.
Technical Analysis of SOL/USDT
At the time of writing, Solana (SOL) was priced at $143, maintaining its recent price movements within a narrow range of $120 to $162 since August 5, when its value briefly dipped below $110.
Reviewing the SOL/USDT chart on TradingView, the pair has been consolidating inside a distinct pennant pattern for nine months. This flag formation suggests a significant price movement could be imminent in the current quarter.