It’s no surprise that Solana’s price positions for a significant shift with the approval and launch of the Solana ETF (SOLETF). Earlier this year, we witnessed Bitcoin’s price surge from below $30,000 in October 2023 to over $45,000 by early January 2024 following the Bitcoin ETF approval.
Similarly, Ethereum’s price rose from $3,810 to $3,940 after its ETF approval, showing strong market sentiment.
As we anticipate the impact of the SOLETF launch, it’s natural to expect notable movements in Solana’s price. This article explores Solana’s price prediction after ETF approval, covering expert forecasts and post-SOLETF price trends.
Keep reading to discover how the SOLETF could influence Solana’s future and what experts are forecasting. Stay ahead of the market trends with our in-depth analysis.
What To Expect?
In our analysis, it’s crucial to highlight Solana’s price movement following the Solana ETF filing by VanEck and 21Shares. Solana’s value dropped 5% after the filing, showing the initial excitement and FOMO around VanEck had faded.
Despite VanEck’s S-1 application for a spot Solana ETF boosting sentiment, Solana trades below key resistance levels. Recent analysis shows Solana struggles to break above the 20-week SMA of $153 and the 100-day SMA of $158. After a volatile week, SOL slipped below these levels, facing significant downward pressure.
For Solana to break through these resistance levels, it needs stronger market sentiment. Additional participation from traditional financial institutions in Solana ETFs could drive this sentiment, attracting institutional interest. This pattern mirrors what occurred with Bitcoin and Ethereum when their ETFs were approved, which led to significant price increases.
Solana hopes for a similar surge once its ETF is approved. This is because of Bitcoin and Ethereum’s positive price movements after their ETF approvals.
Hope for Bull Run
Solana’s bullish momentum closely ties to overall market conditions, particularly Bitcoin’s performance. In a bull run, when the market is generally trending upwards, cryptocurrencies like Solana tend to see significant gains.
However, if Bitcoin, the market leader, experiences a sharp decline, such as falling below $60,000, it can create a ripple effect throughout the cryptocurrency market. This downturn would likely hinder Solana’s ability to sustain or initiate any significant upward movement. Therefore, Solana’s price trajectory is not only dependent on its developments and news but also on the broader market trends, especially those involving Bitcoin.
At the latest check, SOL is trading within a narrow band of $132 to $143. In the past 24 hours, its price has fallen by 7.46%, driven by significant sell-offs across the market.
Analyzing the daily chart, we see the Relative Strength Index (RSI) near 40. The RSI is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and identifies overbought or oversold conditions in an asset.
When the RSI falls below 50, it suggests that the momentum is bearish, indicating that the selling pressure outweighs the buying pressure. Conversely, when the RSI rises above 50, it indicates bullish momentum, where buying pressure is stronger than selling pressure.
With SOL’s RSI currently near 40, it is clear that the asset is experiencing bearish momentum. This means that sellers are currently in control, pushing the price lower. If this downward momentum continues without any significant buying support, it could lead to further price declines, driving SOL’s value even lower.
For SOL to stay bullish, it needs to remain above $128. A break below this level could lead to further declines toward the significant support level at $87. If Bulls manage to push the price of the current 200-day SMA support, Solana could surge by 22% to reach $164, aligning with the top trend line of the symmetrical triangle.
The prevailing trend before this pattern was upward, and viewing the symmetrical triangle as part of a bullish pennant chart formation suggests a high probability of an upward breakout. This Solana price prediction indicates that breaking above the symmetrical triangle could lead to a 37% increase, bringing SOL’s price to $227, just 12% below its previous all-time high.
Bottom Line
In conclusion, the potential approval of a Solana ETF could have a transformative impact on the cryptocurrency’s price trajectory. While the outcome is still uncertain, a successful Solana ETF launch in Canada or the US could drive substantial gains, possibly propelling Solana to new all-time highs.
This approval would attract more institutional investors and boost the asset’s visibility and credibility in the financial market.
Current technical indicators show that Solana is poised for significant upward movement, supported by key levels and bullish formations.
If regulators approve the ETF, we could see a surge that boosts Solana’s position in the cryptocurrency landscape.
Stay tuned for more updates on this exciting development and its potential implications for the future of Solana.
