Solana Poised for Major Rally Amid Anticipation of SOL ETF Approvals
Key Points:
- Solana (SOL) may be nearing a major bullish breakout.
- Analysts believe the SEC is likely to approve spot Solana ETFs later this year.
- Technical indicators, including a bullish flag and inverse head-and-shoulders pattern, support a potential sharp rally.
Solana’s price has been relatively stable since June 29, but this period of consolidation may be setting the stage for a strong move upward. Investors are closely watching as hopes rise for the SEC to approve spot SOL ETFs, a catalyst that could fuel significant buying pressure.
ETF Optimism Boosts Solana’s Outlook
One of the main drivers behind Solana’s potential breakout is the high likelihood of ETF approval. Betting market Polymarket puts the odds of SEC approval above 90% despite recent delays, including the agency postponing its decision on Fidelity’s SOL ETF. Delays affecting similar proposals from Grayscale and 21Shares are allowing more time for public feedback.
There’s growing belief that these ETFs will attract large-scale investment. JPMorgan estimates that SOL ETFs could draw over $6 billion in their first year. Evidence of this demand is already visible in the performance of the Staking ETF (SSK), which has gathered more than $20.7 million in assets, despite its high 1.14% expense ratio—well above the average.
Momentum is also supported by strong inflows into Bitcoin and Ethereum ETFs, which have brought in approximately $50 billion and $4.46 billion, respectively, this year.
Additionally, upcoming U.S. legislation—especially during the expected “Crypto Week”—may further strengthen Solana’s position. The GENIUS Act, already approved by the Senate, could benefit Solana given its significant use in stablecoin transactions, where it handles over $10 billion in volume.
Bullish Technical Setups for SOL
On the technical front, Solana has dropped from a May high of $186.70 to around $150, but it remains above key support levels. Notably, SOL is trading above the 23.6% Fibonacci retracement level of $141.80 and has broken out of a descending channel, part of a larger bullish flag formation.
An inverse head-and-shoulders pattern has also formed, adding to the bullish outlook. Analysts suggest a move back to May’s high of $186 is possible—a 23% gain from current levels. If SOL surpasses that, a rally to $297 could follow, representing a potential 90% increase.
However, a drop below $127—the June low—would invalidate the bullish forecast.
