Following the passage of the GENIUS crypto act, several cryptocurrencies saw a boost in price, including Solana SOL. Analysts are bullish on the crypto market in August, expecting coins to continue surging in value. Currently trading at $175, SOL has been looking to challenge the $200 resistance for the last few months. After briefly touching $203 earlier this week, the asset saw a correction back towards the $170 mark. Could the Genius Act’s approval be a catalyst for SOL to finally break its downward pattern?
According to Fundstrat analyst Sean Farrell, the bill’s passage could ignite a fire under Solana SOL, sending it to new highs. In essence, the GENIUS act in essence backs the stablecoin domain. This act helps in streamlining the role of stablecoins in the current financial structure and regime. Farrell notes that stablecoin issuance and activity are likely to trigger a surge in activity in the back half of the year. That likely leads to continued Ethereum price increases, which in turn could lift altcoins, including Solana.
Also Read: How the Clarity, Genius, & Anti-CBDC Acts Will Reshape US Crypto
“One of the most bullish things for Solana, I think, is ETH rerating higher,” Farrell explains. “Intuitively, all of these [Layer-1s] re-price off of ETH, and so, if ETH continues to show outperformance, I think, you should expect SOL to show some beta to that over longer time horizons and provide a pretty compelling risk award.” The analyst also adds that the passage of SOL ETFs could trigger a rally to new highs this year. “We are expecting Solana ETFs sometime this year,” he said. “I do think we’re probably going to get staking with them.”
“Our loose price target at the beginning of the year was around $450 and I think that that is still in play.”
SOL’s performance over the last two and a half years has been astronomical. The asset fell to below $10 after the collapse of FTX in 2022. Since its 2022 lows, SOL has hit multiple all-time highs. Since late 2022, SOL’s price has risen by about 2000%. The asset has proven to be one of the most resilient cryptocurrencies in the market.
The market could swing in any direction at this point. Bitcoin (BTC) is showing signs of entering a consolidation phase. The original crypto has dipped to the $116,000 price level, falling 1% and 1.6% in the daily and weekly charts, respectively. A further correction from BTC could trigger a larger market dip, plunging Solana SOL.