Solana under memecoin pressure: Is a Trump victory the next trigger?

• Investor shifted attention from SOL to memecoins.
• Per a crypto hedge fund, SOL’s struggle could ease ahead of US elections. 

Since August, Solana [SOL] has been range-bound within the $160-$120 range.

However, Quinn Thompson, founder of crypto hedge fund Lekker Capital, believes a strong breakout could likely occur. 

According to Thompson, Solana has been muted as crypto natives shifted focus to the memecoin rally. 

“Despite most of the memecoin activity being on SOL, this hasn’t been a huge boon for the SOL token price because the crypto-native capital that would typically buy SOL or other alts is buying memes.” 

US elections potential impact

Thompson added that increasing odds of Trump winning the US elections could drive a strong Bitcoin [BTC] uptrend and eventually boost SOL. 

“This will change soon as BTC will get its mojo back and start trending again. That will then have the biggest knock-on effect for SOL and cause the eventual SOLETH breakout.” 

On the prediction site Polymarket, Trump has increasingly maintained a lead against Kamala in October. This reinforced Thompson’s bullish outlook on BTC and SOL. Currently, speculators priced a 54% chance of Trump’s win against Harris’ 45.3%. 

That said, according to Santiment data, the altcoin’s positive sentiment hit a 9-month high. This underscored speculators’ increasing conviction of SOL’s upside potential. 

However, on an aggregated basis, Market Prophit data had a different sentiment analysis of the SOL market.

At the time of writing, both crowd and smart money sentiments were negative. This meant increasing short-term caution as SOL’s recovery edged closer to key resistance levels. 

At press time, SOL’s latest recovery hit the 200-day MA (Moving Average) at $151, and another overhead hurdle awaited at the middle-range resistance at $160. It had to clear the $160 roadblock for the recovery to extend to $180.