Market Overview and Current Trends
Despite the broader market downturn, Solana (SOL) remains bullish, fueled by ongoing speculation around a potential Solana ETF. This suggests significant potential for a price jump. Over the last 24 hours, SOL has decreased by 8.4%, trading at $136 during European business hours. This drop is partly due to Bitcoin’s recent fall below the crucial support level of $60,000, which has impacted other cryptocurrencies.
Short-Term Bullish Outlook
The recent Bitcoin downturn, part of a three-day decline from $63,490 to $58,893, has affected Solana, causing its price to drop from $155 to $136. However, the SOL price remains above the 200-day simple moving average (SMA), a bullish indicator for the asset.
Despite a 4% decrease in the overall crypto market cap to $2.29 trillion, Solana has maintained its symmetrical triangle formation, finding support at the 200-day SMA and showing signs of a rebound. For Solana to remain bullish, its price must stay above $128; a break below this level could lead to further downside toward the major support level at $87.
If the bulls prevail and SOL bounces off the 200-day SMA support, it may experience a 22% surge, reaching $164, which aligns with the top trend line of the symmetrical triangle. The prevailing upward trend before the formation of this chart pattern suggests that Solana may continue to rise. A break above the symmetrical triangle could lead to a 37% price increase, pushing SOL to $227, just 12% shy of its previous all-time high.
Solana ETF Filing as a Major Price Driver
News of VanEck and 21Shares filing for a Solana ETF has significantly impacted the crypto space. Enthusiasts are speculating about a potential "Solana alt season" if the ETF receives approval soon. According to a GSR Trading report, which ranks the likelihood of ETF approval based on decentralization and demand scores, Solana scores 0.58, just below Ethereum’s 1.13. The report suggests that if a Solana ETF is approved, the asset’s value could soar by 8,900% in this bull market.
Bottom Line
Solana’s price analysis reveals a strong bullish stance, even amid Bitcoin’s downturn. SOL's growing adoption and resilience in the crypto market allow it to maintain positive momentum despite broader market trends. This continued resilience and ecosystem growth attract investor interest, potentially setting the stage for further gains.
As speculation around the Solana ETF builds, investors should keep a close eye on market movements and regulatory developments, which could significantly influence Solana's price trajectory in the coming weeks.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“