SOL analysts highlighted the potential for its price to skyrocket to $400 and beyond, driven by the launch of the first Solana ETF in the United States.
Key points:
Solana continues its mass adoption with the launch of the Bitwise Solana Staking ETF.
The bullish flag pattern of SOL's price points to a surge of more than 100% up to $412.
The native token of Solana, SOL
SOL152.89 €
, was trading at $203 on Tuesday, a 14% increase from its local low of $177 reached on October 22. This recovery is driven by the growing anticipation surrounding the launch of the first Solana ETF in the United States today.
Debut of the first U.S.-based Solana ETF.
The Bitwise Solana Staking exchange-traded fund (ETF) is set to debut today on the New York Stock Exchange under the ticker symbol BSOL.
This marks the first spot Solana ETF in the U.S. with 100% direct exposure to SOL, including integrated staking for approximately 7% annual yields from network rewards.
Bloomberg ETF analyst Eric Balchunas confirmed the listing notifications on the NYSE, adding that the Grayscale Solana Trust (GSOL) becomes a spot ETF tomorrow, October 29, providing another regulated avenue for exposure to the price of SOL and staking rewards.
The approval process for cryptocurrency ETFs in U.S. markets has stalled since the federal government shutdown on October 1.
"Approved by the Securities Commission, the $BSOL ETF from Bitwise officially begins trading today," said cryptocurrency analyst Bitcoinsensus in a post on X on Tuesday, adding:
"This marks a significant milestone for Solana and the adoption of altcoin ETFs. The ETF also offers investors exposure to all staking features."
This debut is set to drive the price of SOL through unprecedented institutional inflows, as seen with the REX-Osprey Solana Staking ETF, SSK, which debuted on June 30 with a volume of over $12 million on the first day.
JPMorgan, a multinational investment bank, predicted that a Solana ETF would attract between $3 billion and $6 billion in its first year, based on the adoption rates of Bitcoin and Ether ETFs.
The price of SOL could double after a bullish flag breakout.
The price action of SOL exhibits a bullish flag pattern on the weekly time frame, indicating potential rise to $400 and beyond.
A bullish flag is a continuation pattern that occurs after a significant rise, followed by a consolidation period at the upper end of the price range. As a technical rule, a breakout above the upper trend line of the flag can trigger a parabolic price rise.
The chart pattern will resolve once the price breaks above the upper limit of the flag at $205.
The measured target for this pattern, the height of the flagpole added to the breakout point, is $412, or an increase of 104% from the current level.
Also supporting the rise of SOL is the increase in RSI value to 53 on Tuesday, up from 34 in mid-June, when the bullish flag formation began. This indicates a steady increase in upward momentum.
A similar target was set by the BitBull analyst, who said that "$SOL continues to hold its 3-year support trend line," with the most important level for Solana being $280.
"A weekly close above this level will trigger a massive rally," said the analyst, adding:
"I still believe we will see SOL at $400-$500 in this cycle."
The RSI rising above the midpoint indicates that buyers are in control. This could help SOL break above $220 and pave the way for a rally to $260 and higher.
This article contains no investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
