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Solana’s (SOL) rally 6% near $121 fueled by Grayscale filing & PayPal news
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Grayscale files a SEC application to convert GSOL Trust into a spot Solana exchange traded fund on NYSE Arca
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SOL holds important $100-$115 support zones; analysts eye $186+ break out potential
Solana (SOL), a key technical support zone, regained its focus on Saturday. The stock rose nearly 6% in 24 hours and is now trading near $120.
Analyst Ali Martinez reported that 71.4% Binance traders held long Solana.
Grayscale Files for Spot Solana Conversion to ETF (GSOL).
Grayscale Investments, in an effort to fuel bullish sentiments, filed a registration with the SEC Friday seeking to convert their Grayscale Solana Trust into a spot Solana ETF that is listed on NYSE Arca. Grayscale has successfully converted its Bitcoin and Ethereum products.
Market observers believe that Solana is a strong candidate to be approved for a spot ETF, citing the established U.S. Futures market and the perceived shift towards clearer crypto regulations. An approved ETF could offer traditional investors direct exposure to SOL, allowing capital inflows.
PayPal Adds Full Support for SOL Including Transfers
PayPal, the payments giant, updated its services in the US to include full support of Solana (and Chainlink), within its PayPal and Venmo applications. Users can now directly buy, sell, and hold SOL, increasing the token’s utility and accessibility on the platform.
Related toWill Solana get faster? Devs propose higher block transaction limits
Technical Analysis: SOL holds key support zone ($100-$115).
Analyst Crypto Patel said that from a technical standpoint, SOL is holding its ground within a Fibonacci key support zone between $100 and $115. This area was the launchpad for significant rallies during the previous bull cycle.
Patel said that if accumulation continues, it could lead to confirmation of a breakout above $186. This could lead to a retest of the previous all-time-high near $296 with a longer-term Fibonacci target near $1,011.
Indicators of caution despite bullish catalysts
Nevertheless, current indicators call for caution. The Relative Strength Index hovers around 40.74. This indicates weak momentum. Its gradient suggests that there could be some near-term pressure to sell despite the daily price increase. SOL is also below its 20-day EMA support around $128.23.
Related Top Trader Issues a Solana Warning: Break below $117 could trigger ‘Slow Blood’
The recent news flow and support holds suggest that the short-term bullish case is strengthened by a clear break above EMA.
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