The institutional environment is one of the key factors that influence the acceptance and assessment of cryptocurrencies. Recently, 21Shares and VanEck submitted applications to the U.S. Securities and Exchange Commission (SEC) to launch Solana-based exchange-traded funds (ETFs). The ETFs are to be listed at the Cboe BZX Exchange, which in turn increases the chances of cryptocurrency to be included in the traditional financial systems.
NEWS: GSR Markets, crypto market makers, suggest a Spot Solana ETF could increase the price of $SOL by 9 times to $1,350.
How bullish are you on $SOL?
Track $SOL price ➡️ https://t.co/5kWrddzSXk pic.twitter.com/NqEjYRR9HG
— CoinGecko (@coingecko) June 28, 2024
Therefore, the approach that the SEC will take in the future regarding cryptocurrencies will be decisive for the future of these ETFs. If the SEC does not consider Solana as a security, then the ETF can proceed, which can lead to higher investment and focus on Solana. Approval of SOL ETF may lead to institutional and retail investment similar to Ethereum, whose ETFs opened the door to investors.
Challenges in Securing Approval
Other significant obstacles are that the SEC has not come out with a stance on crypto staking, and the Solana futures market has yet to be established. Some people in the industry are making up future speculation that under new U.S. leadership, a more bullish standard for cryptocurrencies could have the lead in proceeding with ETF approvals—technology advances and ecosystem growth back up the case for Solana.
Some examples here include NFT compression, that offers scalable and cost-effective solutions for non-fungible tokens; Firedancer is a third-party validation software that improves speed and efficiency within Solana to better place the blockchain within the market. It may help enhance the SEC’s decision.
Solana’s Dominance in the NFT Market
Of late, non-fungible token (NFT) markets have experienced hype. Data has shown that trading volumes of NFT collections on Solana have dramatically escalated, surpassing Ethereum for the first time. This has been heavily supported by the popularity of collections such as “Mad Lads,” which grew its sales volume by 68%.
So you are telling me that @MadLads went from 60 to 100 SOL in a couple days and nobody is dumping the floor after this heavy pump.
MadLads community is made by psychopaths and I love it. pic.twitter.com/MYSFwAcLn0
— Sensei (@0xSenseiSOL) July 1, 2024
Solana offered faster transaction speed and lower fees than Ethereum, making it an attractive option for NFT creators and collectors. This heightened activity in the NFT space indicates how well Solana is positioned for more of the same moving forward—and further investor interest.
SOL/USD Technical Analysis and Future Outlook
At the time of writing, Solana was trading around $141.45 with a bullish momentum supported by the uptrend channel and the 50-day Exponential Moving Average around $139.55. However, it will depend on holding above the crucial support level of $138.80 to maintain rally. Below the latter, the bearish reversal might start. In this respect, SOL is now fighting crucial resistance levels of $144.40, $148.00, and $151.00, that can play a vital role in the further potential breakout scenario.
Currently, market sentiment is neutral as per the Relative Strength Index reading of 50.74, suggesting that there might be more for SOL to go with the favorable structure if it manages to hold above $138.80. Analysts expect a rally to come from September to October as Solana concludes its fifth wave in the Elliott Wave cycle. Consequently, the holding up of Solana at support levels and the breaking of resistance points could set the stage for a sustainable price surge.
