As a seasoned crypto investor with a good understanding of the market dynamics, I believe that Solana’s recent price surge is primarily driven by the anticipation of an upcoming Solana ETF. The filing of Form S-1 for the Solana ETF by VenECK and the previous filing by 3iQ Corp have fueled optimism in the market.
Solana is among the leading altcoins currently making a comeback in the tight market conditions. After several days of downturn, Solana’s price had reached a low of $123.8, but it has experienced a 6% increase within the last 24 hours, bringing its value up to $144.31. However, this growth hasn’t yet made up for the losses incurred over the past month, which amounted to a 13% decrease. The primary objective is to approach the historic peak of $260.06, a goal that has remained elusive for three years. The question remains: what factors are causing Solana’s price increase today? And could it potentially reach another all-time high?
Crypto ETF Discussion Influencing the Solana Price
As a crypto investor, I’ve noticed the spotlight has moved from Ethereum to Solana in regards to potential ETF approvals. The market buzz has been swirling around Solana even before Ethereum’s ETF was given the green light. Some believe that the approval process for a Solana ETF might be smoother due to its growing popularity and market traction.
As a researcher studying the cryptocurrency market, I’ve noticed an intriguing price surge in Solana recently. Notably, VenECK, a Bitcoin ETF provider, has filed a Form S-1 with the Securities and Exchange Commission (SEC) for an upcoming Solana ETF. This marks the first official filing for a Solana ETF, indicating that other prominent firms like BlackRock, Fidelity, and Grayscale might follow suit soon.
Previously, 3iQ Corp, a Canadian investment company, submitted the preliminary prospectus for the Solana Fund (QSOL). The announcement generated excitement in the market regarding a potential Solana Exchange-Traded Fund (ETF). However, it’s important to note that Solana faces several challenges on its path to realization. Among these hurdles are the absence of Solana Futures ETF and the SEC’s classification of Solana as a security. The U.S. Securities and Exchange Commission has historically taken a cautious approach when it comes to approving new ETFs, so it may take some time before QSOL receives approval.
As a dedicated researcher following the developments in the world of cryptocurrencies and exchange-traded funds (ETFs), I’ve observed an increasing buzz surrounding the potential launch of a Solana ETF. James Seyffart, a reputed Bloomberg ETF Analyst, shares my anticipation and believes that this ETF could make its market debut by 2025.
The first filing for an SOL ETF in the United States is noteworthy. It remains to be seen if other issuers will quickly follow this move. Preliminary considerations indicate that the launch may not occur before 2025, assuming a new presidential administration and SEC approval. However, even with these conditions met, success is not guaranteed.
— James Seyffart (@JSeyff) June 27, 2024
Can SOL Surge To A New ATH?
Amidst the buzz surrounding the Solana ETF, the price of SOL has rebounded briskly due to heightened network activity. The 24-hour trading volume has spiked to $3.13 billion, marking an impressive 112% increase. This significant surge could potentially propel the Solana price even higher.
According to several technical indicators, this well-known altcoin presents a favorable buying opportunity based on its daily price charts. This assessment is also valid for the exponential moving averages (EMAs) and simple moving averages (SMAs), particularly for time frames such as 5 days, 10 days, 20 days, and 200 days. However, the longer-term indicators of 50 weeks and 100 weeks continue to suggest a selling trend.
The MACD line (using a 12-day and 26-day moving average) currently stands at -4.879, signaling a selling opportunity. Furthermore, the Stochastic Oscillator (14-day) reading suggests overbought conditions for the SOL token. However, the Relative Strength Index (RSI), which measures the relative strength of the SOL price action, is neutral, reducing the likelihood of an imminent trend reversal. Notably, key resistance levels are situated around 145.296; a successful breach of this level could potentially trigger an uptrend for Solana.
As a market analyst, I would note that the Fibonacci resistance levels lie around 151.307, 155.021, and 161.032. Overcoming these levels could potentially lead the price towards retesting the March high at $202.
How High Solana Price Can Go With Solana ETF Approval?
As an analyst, I’d say that with the approval of the Solana ETF, the price targets have significantly increased. Some investors are aiming for prices as high as $300, $500, or even $1000. Predicting an exact price is currently difficult, but based on various calculations made by analysts, a potential surge of up to nine times the current price is a possibility.
In reality, Ethereum didn’t live up to that forecast following its ETF approval. As for Solana, it’s unlikely that its price will reach significantly high levels based on current market conditions.
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2024-06-28 10:53