Solana (SOL) price has risen 4.6% in the last 24 hours to $196.06, approaching the $200 level. This bullish momentum has spurred investor interest in the coin, driven by expectations of the launch of a Solana Futures ETF and the recovery of the crypto market as a whole.
With a trading volume of $2.33 billion and a market cap of $94.04 billion, Solana continues to strengthen its position as one of the best performing blockchains.
Will the Solana Futures ETF have a significant impact on the market?
Volatility Shares LLC has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to launch a Solana Futures ETF with 1x, 2x, and -1x leverage. If approved, the ETFs would allow investors to trade Solana and take advantage of both upside and downside trends, offering new ways to profit from price action.
It is worth noting that including a product with a leverage of -1 will enable investors to hedge against price declines; Volatility Shares has already established itself in the ETF space with its ETH Futures ETFs and hybrid products.
Although this application for Solana has not yet been approved, it indicates the growing demand for regulated cryptocurrency investment products, and could pave the way for the launch of a spot Solana ETF in the future.
Solana Overview: Increasing Momentum:
Solana price broke out of a symmetrical triangle pattern near 196.10, indicating positive momentum. If it manages to break the resistance at $201.75, it will then head towards $211.55 and $218.86.
On the other hand, the nearest resistance is at $193.24 with additional levels at $182.53 and $174.53.
The Relative Strength Index (RSI) is at 58.72, indicating a strong and balanced uptrend without entering the overbought zone. The 50-day EMA has turned into a support level, which will increase the strength of the breakout.
Impact on the market as a whole:
The launch of the Solana Futures ETF could have a significant impact, attracting institutional interest and cementing Solana’s status as a top-tier investment asset. Analysts suggest the move could pave the way for a futures ETF for Solana, which would expose investors to the performance of the Solana market.
As the crypto sector evolves, products like the Solana ETFs highlight the increasing intersection between traditional finance and digital assets.
However, the robust infrastructure of the Solana blockchain – known for its speeds and low fees – increases SOL’s appeal as a major cryptocurrency poised for massive growth in the future.