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Simon Chandler
Author
Simon Chandler
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Solana has declined by 5% in the past 24 hours, with its fall to $143 coming after US President Trump signed an executive order calling for a Bitcoin strategic reserve.
SOL remains up by 10% in a week but is down by 30% in a month, with the news of Trump’s new order prompting a ‘sell the news’ dip, with some commentators unenthusiastic about the move.
In fact, Solana co-founder Anatoly Yakovenko has criticized plans for any kind of crypto reserve, suggesting on X that it would undermine decentralization.
Yet so far, the Trump administration seems intent only on retaining Bitcoin and other crypto seized as a result of enforcement actions, so the chances of the US federal government crowding out other holders seem slim right now.
Solana Co-Founder Questions Trump’s Crypto Stockpile – Will SOL Suffer?
Posting on X, Yakovenko listed three potential scenarios in order of preference, with his most favored outcome being that the US government does not create a crypto reserve.
However, as the tweet above indicates, he isn’t completely against the idea of a reserve, with his second preference being that individual states create their own stockpiles as a kind of counterweight to the federal government.
In other words, his tweet isn’t as bearish as it seems at first glance, even if Yakovenko has added his name to the growing list of people who would prefer that the US government mostly stays out of crypto.
There are also some people who would prefer that any reserve would include only Bitcoin, opposing the inclusion of inflationary utility tokens such as Solana.
Either way, the longer-term picture continues to look good for Solana, which boasts the second-biggest layer-one network in terms of TVL.
Its chart today shows the coin sinking to new lows in terms of momentum, with its indicators suggesting that the coin is close to bottoming out.
On the one hand, its RSI (purple) has rebounded after almost falling to 20 at the end of February.
And on the other hand, its 30-day average (orange) still looks like it can fall further below the 200-day (blue), meaning that further falls may be in the offing.
Yet a rebound should be coming soon, particularly with Trump backtracking on tariffs yesterday.
The Solana price could therefore return to $150 within the next one or two weeks, before touching $200 again by the middle of Q2.
A New Layer-Two Network for Solana
Solana is set up nicely to rebound in the coming weeks and months, but it won’t be the only coin posting some significant gains this year.
Newer, small-cap alts are also likely do very well, including some of the more popular presale coins, which can surge when they first list.
One strong example of such a coin is Solaxy (SOLX), which has raised close to $7 million in its ongoing token offering.
Solaxy is exciting because it’s about to launch Solana’s first layer-two network, helping Solana users avoid failed transactions, outages and congestion, which continue to affect the layer-one network during periods of peak traffic.
It will provide faster transactions and lower fees, with SOLX serving as the payment token for these fees.
This will give the coin plenty of utility, meaning that it could attract substantial demand over time, with its price rising accordingly.
Investors can join its sale by going to its official website, where SOLX currently sells at $0.001656.
They should act quickly, since this price will rise tomorrow and will rise several more times before the sale ends, at which point SOLX will list on exchanges and potentially moon.
