- Solana is set to benefit from the pre-election mood as investors turn to low-risk assets.
- Traders could easily push Solana to the next target of $185, especially as top altcoin Ethereum struggles
The past week has marked a crucial period for Solana [SOL], as it finally broke through the $160 resistance after multiple attempts, signaling an end to its two-month downtrend.
Although a sharp 6% intraday dip wiped out some gains two days ago, SOL bulls held steady around the $175 range, preventing further pullback.
With election-driven liquidity on the rise, Solana could be poised to reach $185 – and potentially rally toward $200 – if it successfully flips the $160 level into solid support.
Pre-election buildup is kicking-in
During the last presidential election, Bitcoin broke free from its months-long consolidation and closed above $40K for the first time two months later.
This aligns with a common psychological pattern in which low-risk assets typically attract significant attention, especially in a market characterized by the unpredictability of election outcomes.
As a result, investors anticipate a significant rally in the post-election cycle as they adjust to the newly introduced market trends and diversify their portfolios in search of returns from high-cap altcoins.
Currently, the market is in a pre-election mood, indicating that investors are positioning themselves to capitalize on high returns from low-risk assets like Solana, as illustrated in the chart below.
Source : CryptoQuant
In the past three days, USDT inflows have made a notable comeback, with over $28 million in Tether deposited into exchanges. This surge follows a significant withdrawal of $200 million in USDT tokens just five days ago.
Historically, high USDT inflows are often a precursor to Bitcoin reaching daily highs. As a result, analysts expect Solana to benefit, especially since it outperformed many top altcoins in the previous cycle.
If Solana bulls follow THIS pattern
With a weekly gain of over 5%, Solana has broken a two-month slump, rallying past $170 – a level it last reached in July – while the rest of the altcoins struggle in the red zone.
Currently trading at $176 and with a 22% increase in volume over the last 24 hours, it may indicate an overbought condition as the current price is nearing its two-week high, suggesting that a trend reversal could be on the horizon.
Source : TradingView
However, if bulls view the increased election liquidity as a catalyst for a bullish November, there’s a good chance Solana could absorb this pressure as strong hands enter the cycle.
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If this pattern holds true, traders could easily push Solana to the next target of $185, especially as top altcoin Ethereum struggles with its own network health—an area where Solana excels.
In short, the market conditions are ripe for Solana to hit its near-term target price, driven by a shift of capital into high-cap tokens as the pre-election mood raises volatility and SOL’s dominance among the altcoin pool.