Solana (SOL) Price Surge: ETF Hopes & Institutional Interest
Solana (SOL) Price Soars on ETF Speculation and Institutional Demand
Solana's native token, SOL, experienced a remarkable price increase on June 16th, climbing 9.5% to $157. This surge followed a 100% jump in 24-hour trading volume, reaching $4.5 billion, indicating strong market demand.
SOL/USD daily chart. Source: Cointelegraph/TradingView
Solana ETF Approval Odds Surge Above 90%
The primary driver behind SOL's rally is the growing anticipation of a spot Solana exchange-traded fund (ETF) approval in the United States. Bloomberg analysts suggest a high probability of approval, while Polymarket’s odds have increased to 91% from 77.5% in less than 10 days. This optimism is fueled by recent S-1 filings from seven asset managers, including VanEck, Grayscale, and others, signaling progress in the approval process. Invesco and Galaxy Digital have also announced plans for a Solana ETF Trust.
Solana ETF approval odds on Polymarket. Source: Polymarket
ETF approval could significantly increase institutional investment, potentially driving SOL to new all-time highs; some analysts predict prices as high as $1,300.
Solana Futures Open Interest Reaches Near All-Time Highs
The increase in SOL's price was preceded by a surge in open long positions in the futures market. On June 12th, total open interest reached 45.87 million SOL, a two-year high and a 22% increase over the past 30 days. This represents $6.86 billion in futures positions, indicating substantial institutional participation and bullish sentiment.
Solana futures aggregate open interest, SOL. Source: CoinGlass
SOL: Long/short accounts on Binance. Source: CoinGlass
SOL Price Bull Flag Suggests Potential $315 Target
A bull flag chart pattern has emerged on the daily SOL/USD chart, suggesting further price increases. If the price breaks above the upper trendline, the target could be as high as $315, representing a 100% increase from the current price. The daily RSI also supports this bullish outlook, rising to 50 from 38 in two days.
SOL/USD daily chart. Source: Cointelegraph/TradingView
Disclaimer: This article does not provide financial advice. Conduct thorough research before making any investment decisions.
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