3 Reasons Why Solana Price May Explode Before June Ends

Solana (SOL) is down by roughly 10% this month from its opening price of $156. As of June 27, Solana price is trading at $140 with an intraday loss of 3.45%. Despite the bearish pressure, three factors suggest that SOL could explode soon. Let’s explore.

Top Reasons Why Solana Price Could Explode Before June Ends

The price of Solana may undergo a bullish rally in the coming days, as three key factors, including on-chain and macro-factors, suggest that bulls are about to regain control. These include:

• Spot SOL ETFs
• Surging DEX Volumes
• Government Adoption of the Solana blockchain

Spot SOL ETF Filings Signal Institutional Interest

The top reason for a Solana price implosion before the end of June is surging institutional interest seen with spot SOL ETF filings. As CoinGape reported, Invesco Galaxy filed an S-1 for a SOL ETF, joining other top firms such as VanEck, BitWise, and 21Shares.

The recent filing coincides with surging odds of approval. Per Polymarket data, the odds of this product being approved before the end of the year stand at 91%, and have been at range highs since a notable surge. Meanwhile, 46% of traders are also optimistic that the product may be approved next month.

Surging DEX Volumes Signal Institutional Interest

Data from DeFiLlama shows that SOL currently ranks second in decentralized exchange (DEX) volumes, which may bode well for the Solana price. In the last 30 days, DEX volumes reached $64 billion, higher than Ethereum’s $61 billion. BNB Chain topped the 30-day DEX volumes with $159 billion.

This growth shows that the SOL price has bullish catalysts that may support a recovery despite fading meme coin activity. As these volumes rise to boost SOL’s utility, the price may be poised for notable gains.

Government Taps Solana blockchain

Wyoming state is also tapping the SOL blockchain for a stablecoin project, and this is bullish for SOL price. Per CoinGape’s report, Wyoming will tap Solana and Aptos for the launch of the WYST stablecoin backed by the state.

This adoption supports a bullish outlook for Solana before the end of the month. As confidence towards SOL due to such moves, buyers may step in and trigger a notable rally in the next three days.

Key Levels to Watch in Solana Price

As bullish factors align around the SOL price forecast, technical indicators and the Fibonacci extension provide the key levels to watch if an explosive rally happens in June. The first level lies at the 61.8% Fibonacci at $152, which Solana price needs to flip into support to give way for a bull run.

The 50-day SMA level of $159 is also acting as a crucial resistance level, with past data showing that each time Solana price crossed this threshold and made a decisive close above it, a rally ensued. The same trend is also seen when SOL crossed the 200-day SMA in Q4 2024.

These are two key levels that traders should watch as they could kickstart the next bull run. If institutional interest, retail activity, and adoption help kickstart a rally and these resistance levels are flipped, Solana could charge for $187.

Nevertheless, while a brief rally to $187 is likely, Solana may not reclaim $200 soon because the RSI shows that buy-side pressure remains weak. With a reading of 43, this indicator shows that the momentum behind SOL’s price action is bearish.

Therefore, while there are three catalysts that are likely to drive Solana price gains in June, traders should watch out for key resistance levels at $152 and $159. If SOL can surpass these levels, it could kickstart a strong upward rally.