Despite growing optimism around ETF approval odds reaching 85%, Solana’s price has recently dipped below the $200 mark. The cryptocurrency is currently trading around $197, showing a 2.91% decline from the previous day. While SOL reached a daily high of $203.84, it experienced a significant pullback to $176.00, indicating increased market volatility.
The technical indicators present a mixed picture, with the price currently hovering between its 50-day moving average of $211.61 and its 200-day moving average of $182.08. This movement comes as several financial firms have filed for spot Solana ETF applications with the SEC, with Grayscale’s filing already accepted for review. The change in SEC leadership has contributed to increased optimism surrounding potential ETF approvals. The recent launch of Solaxy Layer-2 aims to address network congestion issues that have historically impacted Solana’s performance. Similar to Polygon Bridge functionality, these Layer-2 solutions help improve transaction speeds while maintaining security.
The ETF approval process could extend up to 240 days, but market analysts remain optimistic about its potential impact. JPMorgan projects substantial inflows ranging from $2.7 to $5.2 billion in the initial months following ETF approval, with total ecosystem inflows potentially reaching $6 billion.
The cryptocurrency’s outlook for 2025 varies widely among analysts, with predictions ranging from $166 to $555. More optimistic forecasts suggest prices could reach between $220 and $750, with some long-term projections extending as high as $3,211. The average consensus hovers around $800.
However, Solana faces some immediate challenges. The MACD indicator has crossed into negative territory, suggesting building bearish momentum. Additionally, the network has seen a decline in new address creation since January’s peak.
Yet, positive developments like Stripe’s planned integration of Solana stablecoins in early 2025 continue to support long-term optimism.
Institutional interest in Solana remains strong despite recent price struggles. The potential requalification of Solana as a non-security by the SEC, combined with ongoing ecosystem growth and DeFi project development, maintains a positive outlook for the platform’s future.
The cryptocurrency’s journey appears to be at a pivotal junction, with the pending ETF decision potentially serving as a significant catalyst for its next move.
