Solana’s price has reached a state of stability above a significant support level, indicating the possibility of a market bottoming out. This development comes as anticipation grows for the approval of a spot Ethereum exchange-traded fund (ETF), which could occur within the week. If given the green light, the ETF could attract billions of dollars in investment, as was observed earlier this year with Bitcoin. Following this, experts anticipate that the Securities and Exchange Commission (SEC) will shift its attention to approving spot Solana ETFs.
VanEck has already submitted an application for a Solana ETF, and it is expected that other companies such as Blackrock, Franklin Templeton, and Ark Invest will follow suit. This move makes sense considering Solana’s status as the fifth largest cryptocurrency, trailing only Bitcoin, Ethereum, Tether, and BNB. Additionally, Solana boasts a substantial daily trading volume, exceeding $4 billion.
Solana also holds the position of the third-largest blockchain in the decentralized finance (DeFi) industry, trailing only Ethereum and Tron. Its ecosystem boasts over $5.4 billion in assets and over 836k active addresses. The platform has gained popularity among developers due to its speedy transaction processing and low transaction costs. Consequently, it has become a favored network, particularly among developers of meme coins. Notable Solana-based meme coins include Dogwifhat (WIF), Bonk, and Book of Meme (BOME).
Analyzing SOL’s price chart, it is evident that the coin has found robust support at $120.50, with four failed attempts to breach this level since April 13th. This price point also sits just above the 38.2% Fibonacci Retracement level, indicating that bears are hesitant to short the coin below this point. Moreover, the coin has formed a double-top chart pattern, with the neckline at $188.20, approximately 35% higher than the current level.
Conversely, a drop below the aforementioned support level would signify bearish dominance and likely result in further downside movement for the coin.