Seeking to “get in early” on the next rising star in the cryptocurrency space, some investors pay close attention to newly-launched crypto projects, everything from the latest memecoin all the way to more sophisticated, high-utility projects. According to Binance, here are the values of the newest cryptocurrencies. However, while some of the newest cryptos may offer the potential for rapid price appreciation, you may not have to conduct an exhaustive search to find the next great opportunity. Instead, you could find it with one of the already popular and established altcoins.
A good example of this is with Solana (SOL). Over the past month, SOL prices have jumped from just over $100, to around $172.81 as of May 16, 2025. You may be wondering, “after such a big rally, what’s the opportunity here?” SOL’s recent big move notwithstanding, both fundamental and technical analysis suggest this crypto has more room to run in the near-term. With this in mind, let’s dive in, and see where SOL may be headed from here.
Solana: Strengthening Fundamentals Bolster the Bull Case
For SOL, the native token of the Solana blockchain platform, stablecoin supply plays a big role in price action. Circle’s USD Coin (USDC) is the most popular stablecoin on the platform, with USDC representing 77% of the stablecoin within the ecosystem.
As more stablecoins flow into Solana’s decentralized finance (DeFi) ecosystem, this means increased demand for SOL, which is needed for functions such as staking and transaction fees. In turn, this is bullish for SOL prices. For instance, between December 2023 and August 2024, stablecoin inflows increased by 160%, and the price of SOL increased by 230%.
With the supply of stablecoins rising by 156% year-to-date, while SOL is down by around 12.3% year-to-date, this suggests that the native token is undervalued, and that a further increase in price may be justified. Along with stablecoin inflows, metrics like total valued locked (TVL) and transaction count also suggest higher prices ahead for SOL. Over the past month, TVL and total daily transaction volume have increased by 25%.
Next Stop $220? Technical Analysis Say Yes
Fundamental analysis alone points to additional runway for the Solana rally. However, on top of this, there is bullish technical analysis that provides further substance to the SOL bull case. Based on the latest technical analysis of SOL, Solana’s native token entered a bull flag pattern at the start of this month. A bullish continuation pattern, bull flags typically precede a breakout in price. At the time SOL entered this pattern, the breakout price target was $220, with a near-term target of $178.
In more recent trading days, the path to reaching this starting may have started to emerge. During this time frame, SOL has rallied from the $140s to the $160s. Prices could soon hit the near-term target. If this happens, and the bullish trend continues, the next move may just well be to the $220 mark.
That’s over 30% above current price levels. Keep in mind as well that, as SOL leaps to higher prices, new patterns may emerge that signal a move to even higher prices in the near and medium term.
Additional Macro Factors to Consider
Alongside the aforementioned fundamental and technical indicators, there are also some macro factors that may positively influence price action for Solana’s native token in the near-term. For one, the latest rally for not just SOL, but other cryptos as well, has at least been partially driven by growing optimism about trade talks between the U.S. and its leading trading partners. If these trade talks lead to a resolution to the recent tariff hike issue, this could drive a continued rally.
Although cryptocurrencies are often viewed as an alternative to stocks, last month’s tariff tumult among stocks spilled over into the crypto market. Conversely, a rally for stocks driven by decreasing concerns about trade and tariffs could spill over into the crypto market. Also, subsequent news regarding interest rates could be bullish for cryptocurrencies, SOL included. The Federal Reserve recently decided to hold rates as-is, but as other central banks cut rates, America’s central bank may soon follow suit.
