Solana ETF News Ignites Market Frenzy, Sends SOL Price Flying

NOIDA (CoinChapter.com)—Solana has been gaining some traction recently, marked by its recent adoption and technological advancements. These developments have set the stage for VanEck’s filing for a Solana exchange-traded fund (ETF) in the United States.

Moreover, the Ethereum competitor recently introduced Solana Actions and blockchain links, or “blink.”

Blink is a new feature that enables users to execute Solana transactions directly from any website or application that can display a URL.

VanEck’s Solana ETF Filing and the Impact of U.S. Elections

Asset manager VanEck has filed to offer shares in a Solana ETF, making it the first such registration in the U.S. The S-1 registration form submitted to the Securities and Exchange Commission (SEC) resulted in an over 9% increase in Solana’s 24-hour price.

VanEck’s move comes shortly after 3iQ’s similar filing in Canada. Matthew Sigel, VanEck’s head of digital assets research, emphasized that SOL was a commodity akin to Bitcoin and Ether. VanEck’s choice to pursue a Solana ETF is based on the blockchain’s scalability, speed, and low costs.

The SEC’s approval of the first spot Bitcoin ETF in Jan. 2024 set a precedent.

Moreover, an Ether ETF is around the corner. Analysts predict $5 billion in net inflows within the first five months.

Experts suggest that Solana could be the next cryptocurrency to feature in such funds due to its similarities with Ethereum. However, the prospects for a Solana ETF may hinge on the outcome of the 2024 US elections.

Analysts like James Seyffart from Bloomberg Intelligence speculate that significant regulatory shifts may only occur if a new administration takes office, potentially delaying the launch of a Solana ETF until at least 2025.

SOL Price Spikes On ETF Hopes

Responding to the ETF news, SOL price spiked above $151 for the first time since June 17 before paring some of its gains. June 27’s price spike brings SOL’s WTD gains to over 23% on June 27.

The 50-day EMA (purple wave) acts as a dynamic resistance for the Solana token, and the SOL ETF news failed to provide enough impetus for the token to break above it.

Breaking above the EMA resistance could help SOL price rise to the resistance near $154. Moreover, flipping the immediate resistance might see bulls target the resistance near $172.

Conversely, if the rally falters, the Solana token price could drop to support near $134. Breaching this resistance would force the SOL price to test support near $123 before recovering.

The RSI for SOL remained comfortably neutral, with a score of 51.69 on the daily charts. This leaves ample room for an uptrend should the Solana ETF news attract more buyers. Moreover, an uptrend could help Solana confirm a bullish technical setup called the falling wedge.