Solana Price Eyes $300 Rally as SOL ETF Approval Odds Rise

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As a seasoned analyst with over two decades of experience in the financial markets, I must say that the recent surge in Solana’s price has piqued my interest. Having witnessed numerous market cycles and trends, I can confidently say that this bullish momentum seems to be driven by a perfect storm of factors – from Trump’s election win to the prediction of an upcoming SOL ETF approval.

On November 6th, Wednesday saw Solana’s price skyrocket, with cryptocurrencies rejoicing over Donald Trump’s victory. It peaked at $188.40, its highest point since July 29th, following a forecast by a well-known Wall Street analyst indicating an imminent approval for a SOL Exchange Traded Fund (ETF) under the incoming administration.

Solana Price Rises Amid ETF Approval Odds

According to a recent tweet by Erick Balchunas, the chief analyst at Bloomberg ETFs, he jokingly expressed that the chances of a SOL ETF being approved increased to 20% following the election where Donald Trump emerged victorious against Kamala Harris.

Solana Price Eyes $300 Rally as SOL ETF Approval Odds Rise

Multiple financial firms such as Canary Capital, VanEck, and 21Shares have recently submitted applications to create Solana-based Exchange Traded Funds (ETFs), inspired by the successful debut of Ethereum ETFs a short while ago.

As a analyst, I find myself in agreement with the Securities and Exchange Commission (SEC), under the leadership of Gary Gensler, who has raised concerns about Solana’s status as an unregistered security. In order for this fund to be approved by the agency under Gensler’s tenure, it seems necessary that Solana complies with regulations, a process that would involve additional documentation and oversight.

Despite some ambiguity, it remains uncertain if Wall Street will embrace Solana ETFs given that most institutional investors tend to favor Bitcoin. As reported by Sosovalue, Bitcoin spot ETFs have seen a total inflow of approximately $23.5 billion, while Ethereum funds have experienced net outflows amounting to $554 million.

Crypto Analysts Are Bullish On SOL 

Currently, crypto experts are hopeful that the cost of Solana will keep growing over the short term.

In an X post, TraderKox, who has 130,000 followers, gave a Solana price prediction in which he predicted that it will soon make a bullish breakout after an eight-month consolidation. He expects that the coin will jump to $500, implying a 169% increase from the current level. 

Analyst Evan Luthra, who boasts a following of 452,000, has made an audacious prediction. According to him, the price of Solana could soar as high as $1,000 and Bitcoin might reach $100,000 during this current market rally.

SOL Price Analysis Hints Major Breakout

The current price of SOL shows robust technical indications. As you can see in the daily chart, it has constructed an inverse head and shoulders configuration, which is often interpreted as a bullish signal. Moreover, it has surpassed the crucial resistance level at $183, effectively dismantling a minor double-top pattern that was emerging.

The SOL token recently displayed a bullish signal known as a “golden cross,” which occurs when its 50-day and 200-day moving averages intersect. Moreover, the Relative Strength Index (RSI) has surged to 65, while the coin now sits at the overbought region of the Murray Math Lines chart.

Solana Price Eyes $300 Rally as SOL ETF Approval Odds Rise

Given the current trends, we can anticipate a short-term increase in Solana’s price. It may even revisit its yearly high of around $210, which is approximately 15% higher than its current value. If it manages to surpass this level, further growth could be expected, possibly reaching $300.

If this optimistic outlook falls below the horizontal line connecting the two peaks (the “neckline”) at $155, it could potentially slide down to approximately $100.

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2024-11-06 14:46