Solana (SOL) is currently up over 3%, trading near $240. The recent price increase occurred after Grayscale Investments submitted an application to the U.S. Securities and Exchange Commission to convert its Grayscale Solana Trust into a spot ETF. Other asset management firms, such as VanEck, 21Shares, Canary Capital, and Bitwise Asset Management, have also applied for a spot Solana ETF.
Key resistance levels and price targets for Solana
Solana recently completed a correction with an ABC structure, where the price has dropped to the support area. This correction seems to be nearing its end, and Solana has the potential to reverse and begin moving upward again. The current price structure indicates that the fifth wave of the correction may have been completed.
The next significant resistance level for Solana is around $246. If the price breaks above this level, the next major target will be $260. However, a breakout above $260 could propel Solana toward the next resistance level at $313.
Short-term support levels worth watching
If Solana faces a pullback, the initial support area to watch is between $232 and $233. If the price falls below this level, the next support areas to consider are $222 and $205. If Solana breaks above $246, it may become a new support level, leading to continued bullish momentum.
The impact of Bitcoin and Ethereum on Solana's price movements
Solana's price movements tend to follow the market trends of Bitcoin and Ethereum. If Bitcoin and Ethereum experience significant price fluctuations, Solana is likely to reflect this trend. Therefore, monitoring the movements of these major cryptocurrencies is crucial for predicting Solana's next action.
Conclusion
Solana has the potential to form a bullish flag pattern and break out. If this is the case, it may test higher levels, possibly around Christmas or early in the new year. With impending changes in cryptocurrency regulation, Solana is likely to make significant moves, and some analysts predict it could reach $300 or even $400.
