Solana ETF Approval Buzz Enables a 100% SOL Price Rally Setup

A recent sharp rebound in the Solana (SOL) market has raised the cryptocurrency’s potential to continue its uptrend in July and the remainder of 2024. At the core of this bullish outlook is growing anticipation about the potential approval of a spot Solana exchange-traded fund (ETF) in the U.S., as well as technical signals on SOL’s long-term charts.

Let’s discuss these catalysts in detail.

A Solana ETF is Possible in Next 12 Months: Bloomberg Analyst

On June 27 and 28, investment firms VanEck and 21Shares filed for a Spot Solana ETF with the U.S. Securities and Exchange Commission. The announcements have helped the SOL price rally by about 11% to reach $150 ever since.

Part of these gains are driven by hopes that the SEC may approve a Spot Solana ETF in the coming months. For instance, Eric Balchunas, a senior Bloomberg ETF analyst, sees a potential for approval for such a product within the next 12 months, despite the SEC’s categorization of SOL as security in its lawsuits against Binance and Coinbase.

Balchunas argues that a potential change in the SEC leadership following the U.S. presidential elections may benefit Solana. For the unversed: a pro-crypto Donald Trump is showing better odds of winning the election in November, according to betting site PredictIt.

“I see this filing as a call option on the POTUS election,” Balchunas noted, adding:

“[Because] the election happens but the 240 days the SEC has to ponder. I don’t blame them for trying this. Why not!”

These strong fundamentals follow analyst Dentoshi’s prediction of SOL’s price rising to $170 in July, as illustrated in the chart below.

More bullish cues are visible in the return of risk sentiment within the Solana ecosystem, with its top memecoins, including Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT), rallying substantially since the ETF news. This heightened risk sentiment can also be seen in non-Solana memecoins, as we have covered earlier in our Dogecoin and Shiba Inu predictions.

This growing demand for Solana-based products often translates to a heightened demand for SOL, the underlying token.

Solana Price Prediction: Weekly Setup Sees Rally Toward $300

From a long-term technical perspective, Solana is moving inside what appears to be a symmetrical triangle pattern, which, when looked at in conjunction with the previous uptrend, indicates a strong bullish continuation move in the days leading up to the U.S. presidential elections.

For the unversed: Symmetrical triangles form when the price consolidates inside a triangle-shaped pattern for months following a strong move upside or downside. Meanwhile, it resolves after the price breaks above the pattern’s upper trendline and rises by as much as the maximum distance between the upper and the lower trendline.

As of July 2024, SOL’s price is consolidating inside the symmetrical triangle, eyeing a breakout above the upper trendline, which—interestingly—coincides with analyst Dentoshi’s price target of July at around $170.

A successful breakout above the upper trendline will likely enable a SOL price rally toward $300 by the end of the year. Conversely, a break below the lower trendline will risk invalidating the bullish continuation setup, setting SOL’s price on the path toward its 50-week exponential moving average (50-week EMA; the red wave) at around 109.90 instead.