Solana's price might retest $189 due to the submission of a new SOL ETF, indicating potential market interest and demand.
The Talk of the Crypto Town: Solana's ETF Filing Stirs Up the Market
The crypto crowd is buzzing once more, this time over a new Solana ETF filing. Invesco, in partnership with Galaxy Digital Asset Management, has put in an application for an Exchange Traded Fund (ETF) tied to the SOL token. But this announcement hasn't exactly lit a fire under the Solana price - it's been dropping, leaving investors scratching their heads. Why's the Solana price decreasing? That's the hot topic in the crypto community now.
Some are drowning in FOMO, while others hunt for the real cause. So let's dive into the potential chances of the Solana ETF listing and its forecasted price targets.
According to data from Polymarket, the odds of Solana ETF approval by July 31 have dipped by 8% and sit at 42%. This suggests investors aren't holding their breath for a quick approval anytime soon. However, the approval odds for 2025 stand at 90%, indicating a long-term bullish sentiment. The final deadline is set for October, and marketers are optimistic that Solana ETFs might be approved this year.
Given the market sentiments and the potential approval of the Solana ETF by 2025, let's now explore some probable short-term Solana price projections. Despite the ETF filing, the SOL coin price has plummeted by 7.23% with a surge in its trading volume to $6.45 billion. This has resulted in it falling below the $150 mark again this month.
However, it shows signs of forming a strong support in its price chart, currently trading at $147.50 with a market cap of $77.42 billion, positioning itself as the 6th most valuable crypto project.
The Moving Average Convergence Divergence (MACD) indicator reflects a continuous red histogram in the Solana price chart. Moreover, the 12 & 26-day EMA have witnessed a bearish crossover, which typically suggests a strong negative buildup for the altcoin in the market. The Exponential Moving Average 20, 50, 100, & 200 have also shown a bearish convergence, indicating increasing negative influence for the altcoin in the cryptocurrency market.
Will Solana Break Up?
If a bullish reversal occurs during the ETF hype, the SOL crypto price might rebound and challenge its immediate resistance levels of $158 and $189. Sustaining this momentum could propel the price of the Solana token towards its February 15 high of $200.
Conversely, an escalating liquidation situation could push altcoin to retest its imaginary support trendline around the $140 mark. If bearish tendencies grow stronger, the Solana price could collapse towards its lower support of $127 this month.
More Reading: BREAKING: Invesco and Galaxy Digital File for Solana ETF
Enrichment Insights:
- Overall: Solana's drops are influenced by various factors: a decline in memecoin interest, concerns about token unlockings causing increased selling pressure, and unfavorable technical indicators preventing the price from breaking key resistance zones.
- Short-Term Predictions: In the short term, Solana faces resistance around the $150-$165 zone, with failure to reclaim this zone triggering more declines. The key support zone is at $150, with falling below it leading to a sharper dip. Potential targets for falling prices include around $127, similar to April lows.
- Future Scenarios: If Solana manages to break through the $158-$161 zone with strong volume, it could target prices of around $180 or even $200. The current bearish setup suggests that Solana's price will remain under pressure unless it can surmount key resistance levels.
- In the midst of Solana's dropping price, investors are closely watching the progress of the proposed Solana ETF by Invesco and Galaxy Digital Asset Management, with a 42% odds of approval by July 31, signaling a long-term bullish sentiment.
- As the Solana ETF approval process unfolds, some financial analysts predict a potential short-term rebound in the Solana price, aiming to challenge the resistance levels of $158 and $189, if a bullish reversal occurs during the ETF hype.
- On the other hand, ongoing bearish technical indicators and unfavorable market sentiments might result in downward pressure on the Solana price, potentially pushing it towards support levels around $140 or even lower support of $127, especially if the liquidation situation escalates.
