Solana just made the cut as one of the cryptocurrencies that will be part of the upcoming U.S crypto reserve. Solana price action has responded with a massive bullish uptick.
The crypto market has been waiting for President Trump’s administration to confirm Bitcoin’s reserve asset status. However, the U.S President has confirmed plans to launch a U.S crypto reserve and it will hold multiple cryptocurrencies including SOL.
In other words, the U.S government not only recognizes Solana but also intends to add SOL as national reserve asset.
This announcement is a big deal for SOL and the other cryptocurrencies that will be part of the U.S crypto reserves. It could set the pace for the preferred coins that will suck up most of the incoming liquidity during the next major rally.
SOL bulls show up strong in response to President Trump’s announcement
SOL investors have been sitting on the sidelines waiting for the recent FUD to die down after a bearish conclusion to February. The cryptocurrency had even dipped into oversold territory, with price tanking as low as $125.55 on 28 February.
SOL rallied as high as $179.85 after President Trump announced the U.S crypto reserves. It then pulled back to a $166 press time. This price tag represented a 31% premium from its weekly low while the day’s high was a 42% gain.
SOL price action | Source: TradingView This latest recovery has firmly thrust SOL out of oversold territory, with the RSI as clocking 46. Its MACD formed a crossing above the signal line at the time of observation, confirming a pivot backed by robust momentum.
Some analysts believe Trump’s announcement could mark the start of the next major bullish wave. In which case SOL could potentially deliver more upside and possibly push back above $200 this month.
Solana price and network growth recap
Solana managed to maintain positive growth in some key areas in February despite the bearish price action during the month. The network maintained healthy TVL growth in the last 12 months and the same trend continued in February.
Solana TVL surged as high as 66.33 million coins as of 27 February, closing in on its previous ATH achieved in 2022. Its stablecoin marketcap also surged to its highest recorded level at $12.67 billion on 12 February.
Solana TVL and stablecoin marketcap | Source: DeFiLlama The above observation confirms that Solana liquidity is quite impressive alongside the level of confidence, hence more SOL locked.
The network has also been ranked as one of the top networks in terms of address growth. A recent ranking revealed that it had 2.43 million active addresses, which was the same number of active address as the Tron network.
The robust address growth further highlighted one of the reasons why Solana may have joined the list of crypto projects selected to be part of the U.S crypto reserves.
The next few months could be quite exciting for SOL and its cohort. This is because the U.S crypto reserve status may boost confidence in the market.
