Solana (SOL) has experienced a notable price surge, climbing more than 33% since July 4th. Currently trading at $168.88, the cryptocurrency has gained 3.75% in the last 24 hours and over 21% in the past week. The surge comes amid growing optimism and increased buying pressure.
According to Santiment, Solana’s recent price increase is attributed to shifting sentiment from fear, uncertainty, and doubt (FUD) to fear of missing out (FOMO). The cryptocurrency’s price surge positions it as a strong contender for reaching the $200 mark soon.
Rising Optimism for Solana ETF
Among the top ten cryptocurrencies by market capitalization, Solana has seen the second-highest growth over the past week, a more than 20% increase, following XRP’s 23.57% growth, as reported by CoinMarketCap. This is a significant rebound after Solana struggled during the broader crypto market slump.
The renewed interest in Solana is partially driven by the latest filing of an S-1 software with the U.S. Securities and Exchange Commission (SEC) or a spot Solana exchange-traded fund (ETF) by 21Shares. The ETF, named the 21Shares Core Solana ETF, aims to trade at the Cboe BZX Exchange. This filing, made on June 28, follows a similar application by VanEck filed on June 27.
Coinbase will act as the custodian for the ETF’s Solana holdings, which will be privately insured and stored in segregated wallets on the Solana blockchain. However, Reuters reported that the Cboe BZX Exchange must still seek regulatory approval to amend its rules to accommodate these new products. Reports suggest that this approval request could be submitted within days or weeks.
Will the Solana Price Rally Continue?
Crypto analyst Ali Crypto has highlighted a potential risk of $2.98 billion liquidation in short positions if Solana’s price reaches $176. This could cause selling pressure and doubtlessly motivate a price correction.
To sustain the bull rally, Solana will need to surpass this $176 mark. If successful, another analyst, Captain Faibik, predicts that Solana could eventually rise to the $1,000 level.