Solana's price is determined on exchanges, based on supply and demand. This means that Solana's price will rise if there are more buyers than sellers.
Solana's price action is — like other forms of crypto — somewhat tied to the wider crypto market. Like they say: a rising tide lifts all boats.
That said, investors should also look at the potential utility of the network in the long term. Solana is highly scalable and could accomodate many different real-world applications. It’s also of particular utility for the financial sector.