After weeks of steady declines, the crypto market has recovered significantly. This time, the key catalyst was Donald Trump’s unveiling of the crypto strategic reserve. The move legitimizes major altcoins like Solana (SOL) and is set to boost demand directly. Moreover, the move has direct implications for Solana’s short-term outlook.
Following Trump’s crypto reserve announcement, crypto markets soared, recovering some losses since December. Bitcoin was up 10%, reaching a daily high of $95,043. Altcoins fared even better. Solana rose to a daily high of $178.63, registering a 20% price increase, before falling back to $160.17.
The announcement timing was ideal for the Solana coin, significantly improving its technical outlook. Just hours before the announcement, Solana dropped below the lower limit of a rising broadening wedge, which it had maintained since 2023.
If the decline persisted, it would have signaled a potential collapse of SOL’s price, with some traders projecting a drop below $100.
Now, Solana has re-entered the rising wedge pattern, with a potential to recover its all-time high of $295 in the coming months. At the same time, momentum indicators showed substantial improvement, while the short-term RSI suggested oversold conditions.
Trump Includes Solana in Crypto Reserve
On Sunday, March 2, US President Donald Trump announced on social media that he plans to create a “crypto strategic reserve” that would include Bitcoin, Ethereum, Solana, Cardano, and XRP. According to Trump, the goal of that move is to make the US the “crypto capital of the world.”
Solana was not the only token that rose sharply after the announcement. XRP rose even more sharply, from $2.26 to $2.97, and stabilized at $2.63. Cardano saw the biggest gains, with a 60% increase from $0.65 to $1.13. At the same time, the Ethereum price reached a daily high of $2,548 from a low of $2,175. Smaller altcoins rose even more.
Donald Trump did not explain why he mentioned Solana, Cardano, and XRP specifically. One possible reason for their inclusion is their size. Aside from Bitcoin, Ethereum, stablecoins, and BNB, the three coins are the biggest crypto assets in the market.
READ MORE: Top 3 Altcoins to Buy Ahead of Trump Crypto Summit
