Market Frenzy Ignited by Solana ETF News Resulting in Soaring SOL Price

Solana ETF News Sparks Market Frenzy, Sends SOL Price Skyrocketing
Solana has been making waves lately, thanks to its recent adoption and technological advancements. These developments paved the way for VanEck’s filing for a Solana exchange-traded fund (ETF) in the United States. In addition, Solana has recently introduced Solana Actions and blockchain links, known as “blink,” a new feature that allows users to execute Solana transactions directly from any website or application that can display a URL.
VanEck, an asset manager, has filed to offer shares in a Solana ETF, marking the first such registration in the U.S. This filing resulted in a more than 9% increase in Solana’s 24-hour price. VanEck’s decision to pursue a Solana ETF is based on the blockchain’s scalability, speed, and low costs, with the company’s head of digital assets research, Matthew Sigel, emphasizing that SOL was a commodity akin to Bitcoin and Ether.
The SEC’s approval of the first spot Bitcoin ETF in Jan. 2024 set a precedent, and with an Ether ETF on the horizon, analysts predict $5 billion in net inflows within the first five months. Solana could be the next cryptocurrency to be featured in such funds due to its similarities with Ethereum. However, the prospects for a Solana ETF may depend on the outcome of the 2024 US elections, as significant regulatory shifts may only occur if a new administration takes office, potentially delaying the launch of a Solana ETF until at least 2025.
In response to the ETF news, SOL price spiked above $151 for the first time since June 17 before paring some of its gains. The 50-day EMA 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, and 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, and 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, leaving ample room for an uptrend should the Solana ETF news attract more buyers. Additionally, an uptrend could help Solana confirm a bullish technical setup called the falling wedge.