Why Is Solana Rising Today? Will SOL Reach $200 or Crash Again?

Why Is Solana Rising? Key Reasons and SOL Price Prediction 2025

The crypto market has experienced some new action, and one of the altcoins gaining traction is Solana (SOL). The SOL price is rising 6.34% today, trading at approximately $138.72, as per CoinMarketCap. The coin has risen close to 7.61% over the last seven days, coming out of consolidation. 

Source: CoinMarketCap

So, why is Solana rising today? A combination of technical indicators and governance activity appears to be driving this spike.

Rejected SIMD-228 Proposal Creates Buzz

One of the principal reasons for growing interest in altcoin is a recent governance proposal—SIMD-228. The proposal set out to reduce the token's inflation rate from 8% to 1.5%, scaling it depending on staking activity. It was put forth by Multicoin Capital with the intent to make inflation dynamic instead of rigid.

While the turnout was high, with 74% of the staked supply voting, the proposal failed. It received only 61.4% support, falling below the needed 66.7%. Most small validators voted against it, fearing that their incentives would be reduced.

Although the proposal did not pass, it created much publicity for the project. The high participation rate indicates that the altcoin community is very active and ready to contribute to determining its fate.This participation tends to heighten investors' confidence.

Bullish Technical Pattern Indicates More Upside

A second reason for the rally is an old bull pattern called the cup-and-handle formation. This is a chart pattern that will tend to make a strong move higher if confirmed. Analysts such as Ali Martinez have highlighted that the present structure is quite suitable for this setup. If the token gets past some of these resistance points, it can shoot to significantly higher targets—some even talking about prices like $524.25 or up to $3,800.

Source: Twitter

On the short-term perspective, there is a lot of momentum. SOL has just broken through the $135 resistance point with increasing volume and back-to-back green candles. If the uptrend keeps going, it may soon reach the $142–$145 zone. In the case of a pullback, support would be around $135 or $130.

Worst-case scenario, if price goes below $130, the next support would be around $125.

Solana Price Prediction 2025: When Will Solana Reach $200?

When it comes to the grand question—when is SOL going to hit $200—analysts say that yes, that is feasible in Q2 2025 but with good market momentum, adoption, and favorable news. The coin must breach through and above the $145 and $160 resistance levels in order to get there.

The Solana news is positive, with technical trends and ongoing governance shining the light on the project. Traders need to be careful to look out for any pull backs or shift in market conditions before diving in. This SOL price forecast 2025 is still hopeful but cautious, weighing both bull and bear possibilities.