Solana prices could rise as much as 10% as bulls ride on the talk of creating a SOL ETF (exchange traded fund). However, technical indicators show that the bearish hand has tightened its grip and is ready to sell to strength.
The Solana ETF continues to gain traction, with multiple issuers pursuing offerings of this financial product.
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Solana ETF launch triggers positive signal for SOL price
Educational institutions are increasingly interested in SOL. Bitwise and Canary Capital have confirmed that their respective Solana ETFs will begin trading today, October 28th, after weeks of regulatory confusion.
Ryan Rasmussen, head of research at Bitwise, promoted his company’s Solana ETF product under the BSOL ticker, suggesting it is an entry point for institutional investors into the SOL market.
Grayscale has already highlighted this institutional FOMO, touting GSOL, which is touted as the largest publicly traded spot Solana fund in the United States. This financial product already offers exposure to SOL in certain US brokerage accounts with staking enabled.
The same is true for VanEck, which filed its sixth S-1/a amendment for the Solana ETF on Monday. The application status has been changed to “valid” and the fee has been adjusted to 0.3%.
Similarly, Hong Kong’s first Solana ETF began trading on Monday, becoming Asia’s first specific financial product.
Against this backdrop, analysts are bullish on Solana price, which remains at the three-year support trend line.
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Can Solana hit $220 on a 10% run?
As of this writing, Solana’s price is $200.18, down just 1% in the past 24 hours. Despite the lull, technical analysis of the SOL/USDT pair shows that there may be further upside potential on the cards.
Looking back, Solana price has been trading along an uptrend line since April, suggesting bullish momentum is building.
However, the upside is capped at $254.36 and the rejection from the downtrend line has SOL price filling out a symmetrical triangle. Here, two converging trend lines connect a series of lows and highs, indicating a period of consolidation.
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Upon breakout, Solana price could rise 9.76% to $220.43 if momentum holds. This level coincides with the 78.6% Fibonacci retracement level.
If a decisive candlestick closes above this resistance level, Solana price could face the next obstacle at $237.22. This level was last tested in early October.
In a very bullish case, profits could reach $254.36, nearly 30% above current levels. The trajectory of the RSI (Relative Strength Index) sparks optimism and shows momentum building with higher lows.
However, as the bearish volume profile (yellow horizontal bars) overwhelms the bullish volume profile (blue horizontal bars), Solana price may encounter significant resistance on its way up further. This suggests the bears are circling and waiting for the momentum to subside.
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If this happens and Solana price breaks below the most important Fibonacci retracement level of 61.8% at $193.79, the bears could take control. This could cause the altcoin to fall below the lower trendline of the triangle.
Bulls may find another discount entry near the 50% Fibonacci retracement level at $175.08. A bullish hand is already waiting for interaction with Solana price, as indicated by the blue horizontal bar.
Meanwhile, an analysis of Solana price action on the 4-hour perpetual futures chart indicates that the major bullish impulse may be over.
But for some, the slump in Solana prices is the work of Binance, with analyst Marty Partey accusing the exchange of price manipulation.
“Watch developments. With the launch of the Solana ETF, everyone will go long. Binance flushes the range. Understand how the market works right down to the market structure… 3 SOL ETFs are launching this week. Binance liquidated and sold high leverage longs: – $197 with 100x leverage, – $189 with 50x leverage, – 184 with 25x leverage. They use market makers to push the price down, delay trades and liquidate them. It’s been a long time.
