Solana price has bounced back in the past few days as investors moved to buy the dip and after VanEck filed for a SOL ETF. The token soared to a high of $150, much higher than this week’s low of $122.
Solana ETF and transactions
Solana’s performance happened after VanEck, a leading financial services company filed for a spot Solana ETF.
As earlier predicted, the approval of a spot Ethereum ETF by the Securities and Exchange Commission (SEC) will incentivize more companies to apply for Solana ETFs.
Solana is a logical coin in this case because of its role in the crypto industry since it is the second-biggest layer-1 network after Ethereum. It is also one of the most actively traded tokens in the market with daily volume of over $3 billion.
If the SEC approves an Ether ETF, chances are that it will approve a Solana one because the two are similar networks. They are both proof-of-stake (PoS) platforms with staking features that the SEC has criticized before.
Moreover, Solana token has also rebounded as the number of transactions in the network jumped. Data in Solscan shows that the number of all Solana transactions have jumped to over 299 billion and will soon hit 300 billion.
This trend has happened because Solana has emerged as the most popular networks for new developers. Some of the most recent tokens launched on Solana included the likes of Beercoin, Water, Book of Meme, and Dogwifhat.
These tokens have continued to gain market share, with Dogwifhat being the fourth-biggest meme coin in the world.
Meme coin developers love Solana because of its ease of use, low fees, and the fact that transactions are completed fast. For example, while Solana is the most active blockchain this year, its total fees stand at $242 million compared to Ethereum’s and Tron’s $1.6 billion and $762 million.
Solana price forecast
On the daily chart, we see that the SOL token price peaked at $210 in March and has now retreated to $150. It remains below the descending trendline that connects the highest levels since March 8th.
Most importantly, the token has found support at $121.83, where it failed to move below in April, May, and this week. Solana was also consolidating at the 50-day Exponential Moving Average (EMA).
Therefore, the outlook for the token is mildly bullish, with the next point to watch being at the descending trendline at $175. More downside will be confirmed if the price drops below the support at $121.
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