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Solana is garnering increased attention from institutional players and showing promising technical signals. As of the latest data SOL is trading at $147.34 up 0.28% in the last 24 hours and with a market cap of $68.2 billion ranking it 5th in the crypto market. Trading volume in the last 24 hours has also reached $1.7billion placing it 6th in terms of 24-hour volume.
In a significant development, 21Shares which is a prominent crypto-native exchange-traded products issuer has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot Solana ETF. The proposed 21Shares Core Solana ETF aims to track SOL price and would trade on the Cboe BZX Exchange. Coinbase Custody Trust Company is slated to hold the underlying SOL assets in segregated wallets, mirroring 21Shares' approach with other spot ETF offerings.
Notably the 21Shares ETF, like VanEck's proposed offering will not include staking rewards for SOL holdings. This decision likely stems from ongoing regulatory uncertainties surrounding crypto staking.
Adding to the institutional interest reports suggest that BlackRock which is the world's largest asset manager is also considering filing for a Solana ETF this month. If realized this move could boost SOL visibility and accessibility to a broader investor base.
However the path to ETF approval remains uncertain. The SEC has previously hinted at potentially classifying SOL as a security which would subject it to stricter regulations. Additionally the lack of a well established Solana futures market – a factor the SEC considered in approving Bitcoin and Ethereum ETFs – could present another hurdle.
Despite these challenges, some crypto proponents believe a potential shift in U.S. leadership could create a more favorable regulatory environment for SOL ETF approval.
Solana price action has been dynamic in recent weeks. After touching the neckline of a double-top pattern SOL found support and has closed bullish for several days. The price faced rejection for the third time after entering a support zone before rebounding.
From May 21st SOL recorded a high of $188 from a bullish pennant resistance before facing bearish momentum dropping by 35% before finding support. On June 18th it broke down from a wide bullish pennant influenced by broader crypto market sell offs.
Looking at technical indicators, the daily RSI currently sits at 51 indicating a build-up of bullish momentum. This suggests that buying pressure is starting to outweigh selling pressure, potentially signaling a trend reversal.
A bullish crossover has occurred on the MACD reflecting a positive market outlook. This crossover happens when the MACD line crosses above the signal line often interpreted as a buy signal.
On the 4-hour timeframe the resistance level at $140 has been flipped to a support zone few days ago. SOL is currently retesting the bullish pennant resistance. If it manages to push above this level it could signal continued bullish momentum.
The recent price action and technical indicators suggest that Solana may be poised for an upward move.
