2 Important Steps to Take as Solana Soars Toward $200

Solana price has rallied by more than 5% in 24 hours, bringing its seven-day bullish outlook close to 10% after Bitcoin ETF operator VanEck filed for a Solana ETF.

The competitive cryptocurrency immediately started defying the bearish landscape in the market, which has seen major assets like Bitcoin and Ethereum remain significantly suppressed in the last two weeks.

Solana hovered at $144 during European business hours on Friday. The token seemed poised to breach resistance at $150. Should traders buy SOL due to the VanEck proposal, a recovery to $200 could follow.

VanEck Files For Solana ETF

VanEck has gone down in history as the first company to file for a spot Solana exchange-traded fund (ETF), according to a post on X by Mathew Sigel, the head of digital assets research.

This comes months after the firm received a license to operate a spot Bitcoin ETF and weeks following the approval of a spot Ethernet ETF.

According to the communication, VanEck believes Solana to be a commodity due its open-source blockchain technology that has been designed to host different applications.

“We believe the native token, SOL, functions similarly to other digital commodities such as #bitcoin and #ETH. It is utilized to pay for transaction fees and computational services on the blockchain. Like ether on the Ethereum network, SOL can be traded on digital asset platforms or used in peer-to-peer transactions,” Sigel added, explaining why Solana is a commodity just like Bitcoin and Ethereum.

VanEck’s conviction hinges on Solana’s decentralized nature and high utility, not to mention the protocol’s economic feasibility, reflecting existing commodities.

I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US.

Some thoughts on why we believe SOL is a commodity are below.

Why did we file for it?
A competitor to Ethereum, Solana is open-source blockchain software designed to… pic.twitter.com/XwwPy8BXV2

— matthew sigel, recovering CFA (@matthew_sigel) June 27, 2024

Immediately after Ethereum ETFs were approved in the US, attention turned to potential crypto projects with the potential to follow in the footsteps of BTC and Ether.

XRP and Solana emerged as the most viable candidates, with opinion leaders predicting that spot ETFs for digital assets could come before the end of the year.

Ripple recently made another stride in the lawsuit against the Securities and Exchange Commission (SEC), which dropped the proposed penalty from $2 billion to $102.6 million.

As the case heads for trial, a positive outcome could bolster the chances of a spot XRP ETF. Meanwhile, VanEck’s proposal suggests that the tide is about to turn, especially for top altcoins.

Solana Price Forecast: Navigating The Bullish Momentum

Solana price retested the double bottom support near $120 amid the sell-off experienced this month. The last time SOL dropped to this level was in early May, culminating in a commendable rebound to $188. If traders turn to Solana in their numbers, a breakthrough to $200 would be possible, perhaps in the short term.

Currently, a break above the 200 EMA around $148 is required to reinforce the bullish outlook. However, with the Relative Strength Index (RSI) reaching above 70, a bullish outcome is highly likely in the coming days.