Solana
Solana Price Shows Signs of Bottoming, SOL Has 35% Upside Potential
Solana price has stabilized above a key support level as signs of bottoming emerge ahead of Ethereum spot ETF approval.
THE GROUND The token was trading at $140 on Monday, slightly above the crucial support level of $120.50. Its market cap has reached over $65 billion while its Staking Performance increased to 7%.
Ethereum Spot ETF Approved
A potential catalyst for Solana is the upcoming approval of a spot Ethereum ETF, which could happen as early as this week. If approved, billions of dollars could flow into these funds, as happened with Bitcoin earlier this year.
Ethereum ETFs are expected to launch this week.
Those who mitigate the impact of a $ETH ETFs need to know this:…
— Lark Davis (@TheCryptoLark) July 8, 2024
Analysts believe the Securities and Exchange Commission (SEC) will start focusing on Solana spot ETFs after this.
VanEck has already filed its Solana ETF opening requestand other firms like Blackrock, Franklin Templeton and Ark Invest will likely apply for a Solana fund.
Such a fund makes sense because Solana is the fifth-largest cryptocurrency, after Bitcoin, Ethereum, Tether, and BNB. It also has a substantial daily trading volume, which amounts to over $4 billion.
Solana is also the third largest blockchain in the decentralized finance (DeFi) sector after Ethereum and Tron. It has more than $5.4 billion in assets and more than 836,000 active addresses in its ecosystem.
Solana has become a favorite blockchain among developers due to its fast transaction speeds and low transaction costs. As a result, it has become a popular network, especially among meme coin developers. Some of the largest Solana meme coins are Dogwifhat (WIF), Bonk, and Book of Meme (BOME).
Solana Price Hits Floor
Solana Price Chart
The chart above shows that SOL price has found strong support at $120.50, where it has failed to break below four times since April 13. This price is also a few points above the 38.2% Fibonacci retracement point. This is a sign that bears are afraid to short the coin below this point.
This is also a sign that the coin has formed a double top chart pattern with a neckline at $188.20, which is about 35% above the current level.
On the other hand, a drop below this support level will be a sign that the bears have prevailed, leading to further declines.