Solana (SOL) Price Predicted to Hit $200 as VanEck Files Solana ETF in USA

Solana price surged above the $150 mark on Thursday, June 27 as VanEck Filed for Spot SOL ETF with the US SEC, technical indicators suggest that SOL could now be setting up for a major break out $200. 

Why is Solana Price Going Up ?

Solana price surged by more then 25% after US-based Fund Manager VanEck filed application for Solana spot ETF on Thursday June 27.

US-Based Fund manager VanEck, with over $90 billion Asset Under Management (AUM) as of January 2024, has submitted an application with the United States Securities and Exchange Commission (SEC) to file for an exchange-traded fund (ETF) that will track Solana’s spot price.

This comes barely a week after investment firm 3iQ, filed a similar Solana-based spot Exchange Traded Product  (ETP) in Canada.

“I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US,” said Matthew Sigel, head of digital assets research at VanEck, in a post on X on Thursday.

This development follows the U.S. Securities and Exchange Commission’s (SEC) approval of spot ETFs for Bitcoin and Ethereum. Last month, the agency approved 19b-4 forms for spot Ethereum ETFs, which still require the green light for their registration statements before they can start trading. Some analysts expect this approval to come as early as next week.

The VanEck Solana Trust plans to list on the Cboe BZX Exchange, Inc. and will “hold SOL and will value its Shares daily based on the reported MarketVectorTM Solana Benchmark Rate,” according to the firm’s S-1 registration statement.

Solana Bulls Poised to Reverse June 2024 Losses

Solana investors positive reaction to VanEck’s ETF filing has now erased majority of the 29% monthly losses recorded as SOL price plunged from the opening price of $165.19 to $122.20 during the crypto market crash on Monday, June 24.

As seen below, Solana price surged 8% within hours of VanEck’s announcement of the SOL ETF filing bringing it weekly gains to the 25% mark, just 4% shy of reversing the losses recorded in the June 2024.

The TradingView chart above also shows that the daily peak of the $151.02 recorded on Thursday is the highest SOL’s has traded in 10-days dating back to June 17.

More so, VanEck, as part of its application also made bold claims that Solana is not a commodity, contrary to SEC’s claims in a lawsuit filed against Binance and Coinbase in 2023. This has emerged another key factor that drove the Solana’s bullish price reaction on Thursday.

Sigel claimed that SOL should be considered a commodity due to its similarities with Bitcoin and Ethereum. However, the SEC classified SOL as a security in its charges against the crypto exchange Binance last year.

The debate over whether specific cryptocurrencies fall under the SEC’s jurisdiction as securities or the Commodity Futures Trading Commission’s (CFTC) jurisdiction as commodities continues.

“SOL’s decentralized nature, high utility, and economic feasibility align with the characteristics of other established digital commodities, reinforcing our belief that SOL may be a valuable commodity with use cases for investors, builders, and entrepreneurs looking for alternatives to the duopoly app stores,” Sigel stated on Thursday.

Solana Price Forecast: VanEck ETF Filing Could Propel SOL Price to $200

Solana price surged 8% on Thursday June 27, breaking above the $151 mark for the first time in 10 days. However, technical indicators suggest that more upside could follow and trigger a retest of the $200 territory in the days ahead.

Looking at the chart below, Solana has broken through several key resistance levels within the daily timeframe.

The Auto Fib Extension tool highlights a significant resistance zone around $158.39 and $161.66, which corresponds to the 38.2% and 50% Fibonacci retracement levels.

If SOL can maintain momentum and break above these levels, the next target would be the 61.8% Fibonacci retracement level at $167.60. A sustained move above this could pave the way for a retest of the $200 mark.

On the downside, key support levels are found at $147.77 and $153.72, near the 23.6% Fibonacci retracement level. If Solana fails to hold above these supports, it could retrace back to the $130.60 level, which is a critical support zone.

In summary, the current bullish sentiment, driven by the VanEck ETF filing, could provide the necessary catalyst for Solana to continue its upward trajectory toward $200.