The cryptocurrency market is buzzing with speculation about a potential spot for Solana ETF approval by the U.S. Securities and Exchange Commission (SEC). This news comes after Nate Geraci, president of The ETF Store, hinted at such a possibility on social media.
Geraci’s prediction isn’t the only bullish sign for Solana. The recent withdrawal of President Biden from the re-election race has instilled optimism in the market, and Solana’s price movement reflects that. At the time of writing, SOL is trading near $179, up over 4% in the last 24 hours.
This positive sentiment could be further amplified if the SEC approves a spot on the Solana ETF. Such an ETF would allow investors to gain exposure to Solana without directly buying and holding the cryptocurrency. This could attract institutional investors who may have been hesitant due to regulatory uncertainty.
The potential approval of a Solana ETF could also have a ripple effect on Solana-based meme coins like WIF, BONK, JUP, and MEW. These tokens often experience price surges alongside SOL, and an influx of institutional capital could significantly benefit them.
Technically, Solana appears to be in a good position. It recently surpassed the 200-day EMA on the daily timeframe, indicating a potential bullish trend. However, it faces resistance near the $186 level. If SOL can break through this barrier, it could climb towards $200 or even higher.
Supporting this bullish outlook is the increasing open interest in SOL futures contracts, which suggests growing investor confidence. Additionally, short sellers appear to be less aggressive, with their positions concentrated around the $186.5 level.
While Geraci’s prediction remains just that, a prediction, it has certainly ignited excitement in the crypto community. With the overall market sentiment turning positive and Solana displaying bullish technical indicators, the future looks bright for SOL and its ecosystem.