Solana Rare Pattern May Take SOL Price to $297 As ETF Approvals Odds Soar

Solana price has remained flat, continuing a trend that began on June 29. This performance could be a sign of potential buying, which could trigger a strong surge. SOL price has already formed a highly bullish chart pattern, while ETF approval hopes have jumped. 

Solana Price to Benefit From Spot SOL ETF Approvals

The main catalyst for the Solana price is the rising ETF approvals by the SEC later this year. Polymarket odds of these approvals have soared to over 90% this week.

These odds have remained at an elevated level even after the agency delayed the Fidelity Solana ETF. This delay, together with those filed by companies like Grayscale and 21Shares, will give the agency more time to hear from the public about these funds. 

There are signs that Solana ETFs will be popular and lead to substantial inflows from investors. JPMorgan analysts see the SOL ETFs having over $6 billion in inflows in the first year. 

Another sign of demand for these ETFs is the recently approved Staking ETF (SSK) is seeing robust demand from investors. It now holds over $20.7 million in assets, a substantial amount given its costs. SSK has an expense ratio of 1.14%, much higher than most ETFs, which charge less than 0.5%. 

Additionally, spot Bitcoin and Ethereum ETFs are seeing strong inflows this year. Bitcoin funds are nearing the $50 billion inflow milestone, while Ethereum funds have about $4.46 billion. 

Solana price may also benefit from the upcoming “Crypto Week” in which Republicans plan to pass three bills. 

One of them, GENIUS, has already passed in the Senate in a bipartisan manner. This bill will benefit Solana because it is one of the top chains for stablecoin transactions with over $10 billion of supply.

SOL Price Bullish Flag Points to a Surge

The daily timeframe chart shows that the Solana price has pulled back in the past few weeks. It has crashed from a high of $186.7 in May to the current $150. 

The coin has moved above the 23.6% Fibonacci Retracement level at $141.8. Most importantly, it has jumped above the upper side of the descending channel that connects distinct support and resistance levels since May 12.

This descending channel is part of Solana’s bullish flag pattern. It has also formed an inverse head-and-shoulders pattern. 

As such, the most likely scenario is where the SOL price surges to $186, the highest point in May, and 23% above the current level. A break above that level will raise the odds of it jumping by over 90% to $297.

A drop below the key support level at $127, the lowest level in June, will invalidate the bullish SOL price forecast.