Recent developments have put Solana (SOL) under the spotlight. A major catalyst was the news of a SOL ETF in Canada, followed by VanEck’s application for a Solana ETF. This bullish news led to a 10% surge in SOL’s price. However, despite the enthusiasm, the price hike wasn’t sustained, and even with analysts’ optimism, the future course remains uncertain.
What Are Analysts Saying?
Currently, SOL is trading between $132 and $143. After a 5% drop in the last 24 hours, the price settled at $134. The Relative Strength Index (RSI) stands at 40.57, indicating a selling zone. Significant attention is on GSR’s June 28 prediction, which suggested that SOL could rise sharply if the ETF is approved, potentially reaching $1,192 in the long term.
Will Predictions Hold True?
Contrary to GSR’s optimistic outlook, the Cumulative Volume Delta (CVD) paints a different picture. The CVD, which indicates the difference between buying and selling volumes, shows a net negative difference of 127,945. This suggests more selling activity than buying, casting doubts on a bullish trend.
Key Takeaways
Investors can draw several actionable insights from the current analysis:
- Monitor RSI levels for potential entry or exit points.
- Keep an eye on CVD for market sentiment indicators.
- Be aware of formations like the inverted cup and handle for trend predictions.
- Consider potential ETF approvals as significant market movers.
An inverted cup and handle pattern also signals a bearish trend, indicating a potential drop to $126.90 if the formation completes. However, market conditions can reverse these trends, potentially pushing SOL to $145.25.