Solana (SOL) has seen a notable price surge over a three-day period, ending a prolonged downtrend. Starting on July 12, the cryptocurrency rose by 13%, reaching levels last seen on June 27. This rise coincided with VanEck’s application to launch a Solana exchange-traded fund (ETF), which has kept trading interest strong.
The three-day rally has significantly impacted Solana’s technical charts. Solana moved above its 50-day simple moving average (SMA), which is a bullish signal for investors. On July 6, SOL had already climbed above its 20-day exponential moving average (EMA). This further supports a positive outlook for Solana. Solana’s Relative Strength Index (RSI) showed a reading of 59.26, indicating strong buying pressure. This suggests that investor interest in SOL remains high, further boosting its upward trajectory.
Over the past week, Solana’s value has appreciated by 8%. The anticipation of a potential ETF approval has been a significant driver behind this price rally. Both the Chicago Board Options Exchange (CBOE) and Canadian regulators have recently sought permission to list Solana ETFs, adding to the positive sentiment.
The Elder-Ray Index, which measures market strength, showed a positive value of 16.05 for SOL, indicating strong bullish momentum. Similarly, the Awesome Oscillator displayed green bars, signaling increasing upward momentum. If this buying pressure continues, SOL’s price could climb above $153. Conversely, a market downturn could see the price drop to $146.
Investors can draw several actionable insights from Solana’s recent price movements:
Monitor ETF approval announcements, as they can significantly impact price.
Keep an eye on technical indicators like the 50-day SMA and 20-day EMA for bullish signals. RSI values above 59 suggest strong buying pressure; consider this when making investment decisions.
Look for positive Elder-Ray Index and Awesome Oscillator readings as signs of market strength.
While Solana’s recent rally has been impressive, investors should stay vigilant of market trends and regulatory developments that could influence future price movements.