Solana's (SOL) price is up over 8% amid VanEck and 21Shares confirmed they were moving to list a Solana-based exchange-traded fund (ETF). This action is said to have rekindled massive investor interest, leading to a surge in trading volume and investment inflows. Solana trading activity picked up over the past 24 hours, indicating that the altcoin attracted more investor interest and penetrated the market deeper.
At press time, SOL was trading at $142, a 7% surge from the inta-day low of $132.56.
Recent technical analysis further points out that Solana might be at a tipping point for growth. Now trading above $140, the altcoin has seen a string recovery from the monthly lows.
Market analysts highlight that if Solana could overcome a huge resistance level of $150, then its upward rally could continue to the $160 mark. If momentum persists, the cryptocurrency might hit the all-important $200 resistance point later in the summer. However, caution is in place with the bearish pressures.
The price might pull back closer to the $135 support, and further losses could risk a decline toward the $120 zone. Solana's 4-hour technicals reflect neutral to mildly bullish sentiments. The Relative Strength Index stands at 40, indicating neither overbought nor oversold conditions. MACD has also portrayed a slight bullish crossover, reflecting a possible trend change toward upticks.
Specifically, Solana has beaten Ethereum in the latest investment inflow, securing more than $16 million, with Ethereum attracting only $10 million. All this was part of the larger $441 million capital flow into cryptocurrencies. The main drivers have been U.S. investors, who contributed $384 million to the market.
That said, a drift has possibly changed on the new preferences for investments in the cryptocurrency space and towards potential investments in Solana. The market capitalization of Solana has now hit about $65 billion, making it rank as the fifth among cryptocurrencies in terms of market cap.
The raised funding comes at a time when new buying opportunities have opened following price corrections in the recent past. Heavy U.S. investment in the market points toward changing investment preferences and dynamics in the cryptocurrency markets.
One of the potential catalysts for Solana is the awaited approval of a spot Ethereum ETF. This will probably be followed by a capital avalanche like that seen with Bitcoin earlier this year. Now that the Ethereum ETF is in motion, market participants argue that the SEC might finally turn its attention to spot Solana ETFs.
VanEck has already filed an application for a Solana ETF, with other big companies like BlackRock, Franklin Templeton, and Ark Invest expected to do the same. The fact that Solana ranks fifth in terms of market capitalization and has high daily trading volumes makes it ideal for an ETF. High possibility for the price of Solana to go very high is likely if the approval and launch of a Solana ETF come in place, with some predicting even as much as a ninefold increase in price.
Solana continues to be a favorite blockchain among developers because of its fast transaction speeds and low transaction costs. This popularity has even spilled over into meme coin developers, such as Dogwifhat (WIF), Bonk, and Book of Meme (BOME), which are now utilized on the network. All combined, these factors put Solana at a point of massive increase as long as it can hold the bullish impulse above some key resistance levels.