The top layer one (L1) network, Solana (SOL) has been preparing for a bullish run fueled by the high institutional demand lately.
Solana (SOL), a top-tier layer one (L1) network with a vibrant web3 ecosystem, has indicated a new favorable trend after being trapped in a consolidation mode for the past four months. The large-cap altcoin, which has a daily average traded volume of approximately $3.7 billion and a fully diluted valuation of roughly $102 billion, has experienced a more than 22% increase in the past two weeks, and it is currently trading at approximately $176.54 on Wednesday.
Solana’s price has been retesting the recent breakout from a declining logarithmic daily trend from a technical perspective.
The altcoin will be in a favorable position to retest its all-time high shortly if the SOL price consistently closes above this resistance/support level in the coming weeks.
Additionally, the altcoin maintained a consistent closing rate above the daily 50 and 200 Moving Averages (MA) over the past week. A daily Relative Strength Index (RSI) rally above 70 percent, presently at approximately 63 percent, will serve as SOL’s most conclusive bullish indicator.
Approval of Spot Ether ETFs by Solana Benefits
The US SEC’s approval of spot Ethereum ETFs is a sign that it has altered its posture on most altcoins, which were previously believed to have violated securities laws.
The likelihood of Solana developing comparable products has been elevated by the final sanction of spot Ethereum ETFs in the United States. In addition to Bitcoin and Ethereum, the Solana network has exhibited substantial maturity and potential, per the Franklin Templeton Digital Assets researchers.
The researchers observed that Solana has demonstrated significant adoption and is continuing to mature, thereby overcoming technological growing pains and emphasizing the potential of high-throughput, monolithic architectures.
VanEck has applied for a Solana ETF spot with the US Securities and Exchange Commission (SEC). The ultimate decision will be made following the upcoming US general election. The ultimate approval of spot Solana ETF will result from the increasing demand for Solana, which both retail traders and institutional investors are driving.
Increasing Demand
On-chain data indicates that whales have acquired over 238K SOL, valued at over $41 million, from Binance in the past two days, following the significant growth and conjecture of a potential spot Solana ETF forthcoming.
The web3 ecosystem and meme coins have substantially contributed to Solana’s bullish outlook. For the first time in 30 days, the Solana network surpassed the Ethereum ecosystem in trailing DEX volume. This is a remarkable achievement.
The Raydium platform is the most prominent DEX on the Solana network, with a total value of approximately $1.18 billion that has been secured. The Solana meme coins have a daily average trading volume of roughly $2 billion and a market capitalization of approximately $9.48 billion. In the past few months, the Solana network has seen the emergence of hundreds of meme coins, including those led by Dogfight (WIF), Bonk (BONK), Popcat (POPCAT), and Cat in a Canine’s World (MEW), among others.