SOL price eyes a breakout from the cup-and-handle pattern, eyeing $400 rally with the Solana ETF launch likely coming soon.
By Bhushan Akolkar
Editor Julia Sakovich
Updated
3 mins read
SOL SOL $218.7 24h volatility: 4.6% Market cap: $119.44 B Vol. 24h: $8.14 B , the native cryptocurrency of the Solana blockchain, is seeing strong buying action as it gained 4% in the last 24 hours and eyes a breakout past $230. Market experts believe that SOL price could be gearing up for a massive 100% rally ahead, with the launch of the spot Solana ETF nearing. Asset manager Bitwise recently filed an update to its SOL ETF application to add staking.
Crypto analyst Lark Davis highlighted a bullish technical setup for Solana (SOL), noting that the token is forming a cup-and-handle pattern on the monthly chart. According to Davis, the 1.618 Fibonacci extension level points to a potential SOL price target of around $425.
SOL price breakout from cup-and-handle pattern | Source: Lark Davis
He also observed that the monthly MACD is on the verge of a golden cross, signaling strong upward momentum. With growing speculation around a potential Solana ETF approval, Davis suggested that if this pattern confirms, SOL could see a sharp acceleration in price action in the near term.
Furthermore, the approval of Solana ETFs by the US Securities and Exchange Commission (SEC) could serve as an additional catalyst driving the price higher.
In the latest development, asset manager Bitwise has filed for an amendment to its spot Solana ETF (BSOL) to introduce a staking feature along with a competitive fee structure. The SEC faces a final deadline of Oct. 16 to issue a decision on Bitwise’s application.
According to the filing, Bitwise will be charging just 0.20% in fees for its upcoming spot Solana ETF (BSOL), which will be the lowest in the market. Moreover, to attract retail and institutional capital, Bitwise won’t be charging any fee for the first 3 months, or $1 billion in assets under management (AUM), whichever is earlier.
Bloomberg ETF analyst Eric Balchunas noted that such an aggressive pricing strategy is uncommon at launch, and added that Bitwise likely decided to “go low from the start” rather than lower fees later. He described it as a “veteran Terrordome move,” highlighting that low fees have a near-perfect track record in attracting investors.
Crypto market experts also believe that a Solana ETF launch could happen within the next two weeks. Apart from Solana, other crypto ETFs are also preparing for launch as per the October deadlines. However, the US government shutdown could play a spoilsport and delay the launch further.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
