Solana managed to recover quite well after a slight drop below $140 yesterday, having spiked above $145 today. The price seems to hold relatively well above the $142 mark, which should be quite a strong sign for a bullish trend. It's back within a range that's somewhat tight on slightly increased activity, with excitement noted from CBOE's 19b-4 filing with the US SEC, in an effort to have VanEck's spot Solana Trust listed as an ETF.
At press time, SOL was trading at $145, a 2.47% surge from the intra-day low.
Solana (SOL) experienced a massive price swing over the past two days. Having traded at a high of $173 on June 5, on June 24, the value plunged to $124, thus marking a 31% depreciation in value.
However, it rose to $154 on July 3, followed by a correction to $123 on July 5. Since then, the bulls have fought back very well, sending the price of Solana past $140 as of July 9.
Indeed, price action right now gives the impression that SOL might as well hit past $150 this week, should this positive sentiment stay put. The resurgence has spread to its other associated tokens and the whole Solana ecosystem. On-chain activity and growing optimism in markets may fuel further gains in the coming days. Moreover, analyst suggest the current trend mirrors the 2021 trend which may set sight for a rally to $600.
Solana's price has spiked above the middle Bollinger Band line, which denotes the 20-day Simple Moving Average (SMA) which means there is a turn in market sentiment. If this bullish momentum continues, then SOL may hit the upper Bollinger Band, indicating strong upward pressure on price.
The MACD line is above the signal line, with expanding green histogram bars, indicating buyers' dominance. There is also a buy signal from the Supertrend indicator, which suggests a general upward movement.
The Relative Strength Index is pegged at 49, signifying that SOL is gaining bullish momentum after an intense sell-off, leaving it with a lot of space to appreciate further. These signals set up the bullish picture for SOL, which has the potential to test higher resistance at $154 very soon.
The following chart reveals a major bullish reversal after an earlier downtrend. The price of SOL/USD appears to have declined, and a pattern known as a "Falling wedge" is visible. This pattern, consisting of converging trend lines bounding the price series within which it is, in turn, trending downward, generally signals a possible reversal in which prices may start breaking upward, as it actually happens. However, the price is yet to break from this pattern.
The notable rise comes after the price breaks from the apex of the falling wedge. The upward action is intense, going above several important levels of resistance, not well shown here, as this can be expected because the price changes its behavior strongly after the "Bottom 2" caption point.
The chart highlights upward objectives that come into play in the $181 area and $190 to $200. These are probably measured moves derived from taking the height of the falling wedge and projecting it upwards from the break-out point, a common technique of setting goals post-breakout in these patterns.
Concurrently, 21Shares and VanEck have filed for Solana ETFs , marking a first for the asset on the ETF scene. Cboe, one of the biggest US stock exchanges, filed the required 19b-4 filings for these spot Solana ETFs.
If the US SEC approves these filings, it could significantly boost SOL's price, making it easier for traditional investors to gain exposure to Solana.
Spot Solana ETFs are likely to hinge on November's US presidential race, according to Eric Balchunas, Bloomberg Senior ETF analyst. Consequently, the approval and launch of spot Solana ETFs could drastically increase the price of SOL soaring towards $200.