Solanas Price Indicates Signs of Bottoming Out SOL Coin Holds Potential for 35 Upside
Solana’s price has successfully maintained stability above a critical support level, suggesting a potential bottoming out as anticipation grows for the approval of a spot Ethereum exchange-traded fund (ETF).
As of Monday, the SOL token was trading at $140, slightly above the crucial support level of $120.50. Its market capitalization has surged to over $65 billion, and its staking yield has reached 7%.
The imminent approval of a spot Ethereum ETF could serve as a catalyst for Solana’s growth, with billions of dollars expected to flow into these funds, similar to the surge seen in Bitcoin earlier this year. Analysts predict that the Securities and Exchange Commission (SEC) will subsequently shift its focus towards spot Solana ETFs.
VanEck has already submitted its application for a Solana ETF, and other prominent companies such as Blackrock, Franklin Templeton, and Ark Invest are also expected to seek approval for Solana funds. This makes sense considering that Solana is the fifth-largest cryptocurrency, following Bitcoin, Ethereum, Tether, and BNB, with a substantial daily trading volume exceeding $4 billion.
Furthermore, Solana ranks as the third-largest blockchain in the Decentralized Finance (DeFi) industry, trailing only Ethereum and Tron. It boasts over $5.4 billion in assets and more than 836,000 active addresses within its ecosystem.
Developers have taken a particular interest in Solana due to its rapid transaction speeds and low transaction costs, making it a popular network, especially among meme coin developers. Notable Solana meme coins include Dogwifhat (WIF), Bonk, and Book of Meme (BOME).
In terms of price analysis, the SOL price chart highlights a robust support level at $120.50, which has been tested and held four times since April 13th. This price level also aligns with the 38.2% Fibonacci Retracement point, indicating that bears are hesitant to short the coin below this threshold.
Additionally, the chart reveals the formation of a double-top pattern, with the neckline situated at $188.20, approximately 35% higher than the current level. A breach below the aforementioned support level would signify bearish dominance, potentially leading to further downside movement.
