The Solana price has surged 7% in the last 24 hours to trade at $142 as of 3:30 a.m. EST on a 57% pump in trading volume to $4.03 billion.
This surge followed Cboe Global Markets’ July 8 request to the US Securities and Exchange Commission to list spot Solana ETFs.
In line with the trend seen with spot Ethereum ETFs, Cboe submitted the 19b-4 filings for the spot Solana ETF on behalf of 21Shares and VanEck. These are the first proposed Solana ETF products seeking market approval.
Last month, both 21Shares and VanEck applied with the SEC to launch these new products. For trading to begin, the US SEC must approve both the S-1 and 19b-4 filings.
Solana Price Forms Strong Bulish Support
The Solana price has seen a steep drop, underscoring its strong bearish momentum. Initially, it fell to a critical support level of around $157 but then broke below that, dropping further to $138. This hit the lower boundary of the consolidation zone and formed a triple bottom pattern, which traders often view as a bullish reversal signal.
Solana’s price is currently lingering around the 50-day Simple Moving Average (SMA), indicating indecision between the bulls and bears. If market sentiment turns bullish in response to the double-bottom pattern, bulls might drive the price back above both SMAs, potentially sparking a strong rally.
The Relative Strength Index (RSI) shows a rebound around 42, just below the neutral 50 level, suggesting that selling pressure might be easing. If bullish momentum builds, the RSI could rise and possibly enter the overbought territory above 70, signaling increased buying interest and supporting a bullish outlook for Solana.
However, the Moving Average Convergence Divergence (MACD) indicates a bearish trend. The blue average line recently crossed below the orange signal line near the neutral level, indicating bearish momentum. Additionally, the histogram bars reflect negative price movement, reinforcing the bearish outlook.
Solana Price Prediction: Can The Bulls Initiate a Rally?
The bullish technicals support the Solana price, which is poised for a bull rally ahead. The push above the 50 SMA could initiate the rally as the bulls aim to reclaim the previous high at $205.
Conversely, if the bears take advantage of the 50 SMA, they could push the price down, forcing the bulls to retreat to $135 support zone.
Solana seems poised for a comeback, as market dynamics could shift if it breaks through crucial resistance levels.
With Solana’s impressive transaction speeds and low costs, this ETF could facilitate significant investments, making it easier for traditional investors to access Solana. Positioned as a competitor to Ethereum, Solana aims to offer a smart contract platform with significantly faster transaction speeds and lower fees.
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