SEC could approve cryptocurrency ETFs, fueling optimism in Solana’s growth.
On Sunday, the overall cryptocurrency market experienced a slight selling pressure, putting Solana $153 (SOL) at risk of falling below its crucial $140 support level. According to analysts, the market witnessed liquidations amounting to $131 million over the last 24 hours. If SOL’s price drops below this support, it could potentially decline to $100. However, there is hope for Solana, as expectations for an “altcoin ETF summer” may begin next month.
ContentsCritical $140 Support and the $100 Expectation for SolanaETF Optimism and Solana Critical $140 Support and the $100 Expectation for Solana
Solana entered a downward trend in line with the overall sell-off in the cryptocurrency market. After reaching a local peak of $168 on June 11, SOL experienced losses for four consecutive days, subsequently testing the vital $140 support on June 13. This level is significant because, during a previous wave of sales that heavily impacted major altcoins, SOL managed to recover from this precise support.
Crypto analyst Ali Martinez highlighted the significance of the $140 level in a tweet. Martinez warned, “If Solana loses the $140 support, it could pave the way for a deeper correction towards $100.” At the time of reporting, SOL was trading around $146, having slightly increased by 0.39% from a daily low of $144. Nonetheless, if selling pressure continues, the $140 support remains the focal point for analysts. Losing this level carries the risk of SOL declining by 30% to $100.
Conversely, if the current recovery gains momentum, bullish traders will attempt to elevate SOL’s price above the 50-day moving average ($160) and subsequently the 200-day moving average ($174).
ETF Optimism and Solana
Despite the short-term market pressure, a significant development in the medium term is maintaining hopes. Analysts suggest that the U.S. Securities and Exchange Commission (SEC) may start approving exchange-traded funds (ETFs) that track specific cryptocurrency indices, potentially initiating an “altcoin ETF summer” next month.
Bloomberg’s senior ETF analyst Eric Balchunas shared a note from fellow analyst James Seyffart on social media platform X, stating that “ETFs tracking cryptocurrency indices may be approved by the SEC next month.” The note also anticipates early decisions on ETF applications specifically concerning Solana and staking (asset locking).
Balchunas expressed his expectation by saying, “Prepare for a potential altcoin ETF summer, likely led by Solana.” These potential approvals are viewed as highly positive catalysts for Solana.
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