SOL Finds Support and Bullish Momentum Builds as 21 Shares Seek ETF Approval — Should You Buy Now?
Solana (SOL) is currently trading at $141.32, showing a slight dip of 0.35% in the last 24 hours but a healthy gain of 4.56% over the past week. With a market cap exceeding $65.3 billion and a 24-hour trading volume of $1.23 billion, Solana continues to attract bullish attention and shows potential for recovery.
The recent stability in Solana’s price can be attributed to the spot Solana ETF applications filed by major financial players. Last Friday, 21Shares submitted a request to U.S. regulators for permission to launch an exchange-traded fund tied to Solana’s spot price. This move follows a similar filing by VanEck just a day earlier, signaling growing institutional interest in Solana, often referred to as the Ethereum killer.
Both VanEck and 21Shares plan to list their Solana ETFs on CBOE, pending regulatory approval. The exchange is expected to file for a rule change to allow these new products to trade in the coming weeks. This development follows the SEC’s approval of spot Bitcoin ETFs in January, which included offerings from both firms.
Adding to the bullish sentiment, the Solana Foundation has introduced two new developer tools: Solana Actions and blockchain links (blinks). Solana Actions allows users to execute on-chain transactions across various platforms, simplifying the process for developers and users.
Analyzing Solana’s price action, the coin touched the neckline of a double-top pattern before finding support and closing bullish for several days. After facing rejection three times at the horizontal support zone, SOL has shown signs of a potential pullback that is yet to gain strong momentum.
From its May 21st high of $188, reached after breaking out of a bullish pennant, Solana experienced a 35% drop before finding support. The price breakdown from the wide bullish pennant on June 18th was due to bearish pressure and a broad crypto market sell-off.
Technical indicators also present a generally positive outlook. The Daily Relative Strength Index (RSI) currently stands at 45, having recovered from an oversold reading of 29 several days ago, indicating a buildup of bullish momentum. The MACD has experienced a bullish crossover, further suggesting a positive market outlook.
On the 4-hour timeframe, the $140 level has been flipped from resistance to support, with the price currently trading at this level after a slight pullback as a retest. These indicators collectively suggest that bullish momentum may continue building in the near term, potentially fueling a broader strong bullish market for Solana.
A crypto analyst recently noted on X that the race for Solana ETFs is heating up, with two filings in the past two days signaling strong institutional interest in Solana. The analyst also highlighted that Solana has recorded a double bottom and is trading to the upside, currently at the $120 mark. They suggest that if a “Solana summer” occurs, SOL might surge and potentially record fresh highs, similar to its performance in 2023.
Looking forward, Solana technical analysis from Changelly shows a 70% bullish and 30% bearish outlook. The ETH Killer is anticipated to gain 0.61% and hit $142.98 by July 1st, indicating continued bullish momentum.
With institutional interest growing and new developer tools being introduced, Solana is positioning itself for a strong recovery. The approval of Solana ETFs by 21Shares and VanEck could further boost its market presence. If you are considering an investment in Solana, now might be an opportune time to buy, given the current bullish signals and potential for significant gains in the near future.
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