Solana’s price momentum continues to impress, having surged by 13% in the past week. This remarkable shift has propelled it ahead of the BNB coin, now securing the fifth position in terms of crypto market cap rankings. As of now, Solana is trading at $215.15, ending a two-day slump. However, it has been flirting with resistance around the $220 mark for the last few days. A breakthrough at this level could drive Solana to new three-week highs, making it an exciting prospect for both traders and investors.
The driving force behind this uptrend in Solana’s price is the buoyant sentiment triggered by the prospect of ETF approval. Last year, the Securities and Exchange Commission (SEC) suspended applications for Solana’s ETF. Now, as discussions of potential approval heat up, Solana finds itself in prime position to become the second altcoin to secure an ETF. The green light for a spot ETF could be a game-changer, dramatically increasing Solana’s reach among institutional investors.
Interestingly, the long/short ratio for Solana recently tilted toward a bullish sentiment, standing at 2.81 based on data from Coinanalyze. This indicates strong momentum behind the coin. Adding to this positive outlook, DeFiLlama reports a 10.2% increase in Solana’s DeFi Total Value Locked (TVL) over the past week. With a TVL of $9.47 billion, Solana secures its position as the second-largest DeFi platform after Ethereum. This increase in utility is crucial, hinting at further upside potential for SOL.
For those keeping a close watch, Solana’s recent price movements suggest that it is pivoting at around $214.50. The Relative Strength Index speaks volumes, indicating that buyers are firmly in control. Should the momentum push through the resistance at $217, we could witness an exhilarating rise toward the $220 mark.
However, it’s important to remain vigilant. If the price dips below $214.50, we might see sellers taking the reins. In such a scenario, the initial support level could settle at $212, and a breach of this could cast a shadow on the bullish narrative, bringing $209.20 into play.
The landscape for Solana seems poised for intriguing developments, especially with ETF discussions heating up and its DeFi landscape thriving. For investors, the key takeaway is that keeping an eye on both price movements and broader market trends could yield fruitful opportunities in this fluctuating space.
