The Solana price has experienced unprecedented growth, minutes after VanEck filed for Solana ETF in the United States. With a surge of 10% at the time of writing, Solana’s price is trading at $149.2.
Accompanying the recent price movement, its 24-hour trading volume has skyrocketed 30%, as technical indicators signal intense buying pressure.
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The company’s Head of Digital Assets Research, Matthew Sigel, took to the X platform to share why VanEck filed for SOL ETF and why he believes SOL is a commodity like Ethereum and Bitcoin.
He said Solana, which is a competitor to ETH, is ‘’an open-source blockchain software designed to handle various applications, including payments, trading and social transactions.’’
He further added that ‘’unlike Ethereum, Solana works as a “single global state machine” that lacks sharding or layer-2 networks.’’
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
Moreover, the company’s Head of Digital Assets Research has outlined several reasons VanEck believes SOL is a commodity.
He has elaborated, saying,
‘’ We believe the native token, SOL, functions similarly to other digital commodities such as Bitcoin and Ethereum. 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.’’
This news has made the Solana price go ballistic, as its market cap increased 7% to $68 billion.
Solana Statistical Data
According to Coinmarketcap data:
- Solana price now – $149.2
- Solana market cap – $68 billion
- Solana total supply – 578 million
- Solana circulating supply – 462 million
- Solana ranking – #5
The Solana price has bounced from its support of $134 as the bulls dominate the market. It is trading with a bullish bias, recording higher highs as bullish momentum grows.
The climbing Relative Strength Index (RSI) is evidence of bullish momentum, which points to growing buying pressure. Currently, it is at 76. In layperson’s language, if the RSI value is above the 50 threshold, it typically indicates that the cryptocurrency is on an upward trajectory. This basically suggests a bullish sentiment in the SOL market as it is hovering above the 70-overbought zone.
The Moving Average Convergence Divergence (MACD) indicator is also above its signal line and in positive territory. The MACD line crossing above the signal line suggests that the short-term moving average is rising faster than the long-term moving average. This implies increasing positive momentum in the asset’s price movement, intensifying the bullish outlook.
Further, the SOL price is trading above the 50-day SMA, which is its immediate support, but slightly below the 200-day. Increased bullish momentum could flip the 200-day resistance key to support and propel the price to higher levels of around $163.
Solana Price Prediction: Will The Bulls Sustain The Momentum?
The 4-hour chart analysis indicates that the bulls have the upper hand.
Additionally, the Moving Average Convergence Divergence (MACD) position above the signal line (orange band) suggests that the short-term moving average is above the long-term moving average, indicating intense buying pressure. In a similar tone, SOL’s RSI position above the 70-overbought zone points to a bull-dominated market.
Moreover, if the bulls use the 50-day SMA as their support, they could sustain the bullish rally and surpass the $175 major technical barrier to $200.
On the other hand, if the bears manage to enter the market, SOL’s price might take a slight retracement, breaching the $134.32 support and reaching around $122.
Notably, based on Welles Wilder’s interpretation of the RSI, an asset is only ripe for selling once the RSI crosses below the 70 threshold. Until then, traders may consider leaving their orders open, save for those looking to take new positions on Solana.
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