Solana Price News: $190 Support Holds – Bullish Outlook Confirmed?

Solana (SOL) has jumped by nearly 6% in the past 24 hours after a strong support bounce in the past few days.

The token’s price is nearing $220 once again, and trading volumes have risen to more than $8 billion, accounting for 7% of SOL’s circulating supply.

Whenever volumes hit $10 billion, it typically means that the token is gaining directional traction.

The launch of the first spot plus staking exchange-traded fund (ETF) linked to Solana by REX-Osprey may have marked a pivotal moment for this token.

REX-Osprey Solana + Staking ETF AUM – Source: TradingView

Thus far, the vehicle has attracted nearly $340 million in assets. With an annual management fee of 0.75%, the fund gives both retail and institutional investors an affordable alternative to buy SOL in the U.S. public markets through a regulated vehicle.

More Solana spot ETFs could soon hit the trading floor as the U.S. Securities and Exchange Commission (SEC) expedited the route to get these vehicles listed.

Now, asset management firms just have to submit an S-1 prospectus for the fund rather than going through slower proceedings like 19b-4 forms.

If more funds are launched, the demand for SOL could skyrocket in the near term.

Institutional Awareness is Growing for Solana

The increasing popularity of Solana-based protocols like Pump.fun favor a bullish outlook for Solana as well. This project has been launching some interesting initiatives like Livestreams, a new rewards program called Ascend, and more.

Just this week, ARK Invest recognized Pump.fun’s appeal to retail investors. This kind of exposure to institutional players aims at potential partnerships and investments. Who knows, maybe a PUMP ETF could be on the horizon.

Meanwhile, macroeconomic conditions favor a bullish outlook for cryptos as well. The Federal Reserve cut interest rates for the first time this year recently and could be prepared to make another cut in October during the next FOMC meeting.

Altcoin season has also officially started as BTC dominance is progressively declining while top tokens in this category, like BNB Coin (BNB) and Ethereum (ETH), have made new all-time highs.

Solana could play catch-up with its two biggest rivals soon, and the first target in sight could be the $300 level, if that’s the case.

SOL Eyes $260 After Trend Line Bounce

The daily chart shows a strong bounce off $190. This level coincides with both a key horizontal and trend line support and could result in a move to $260 for the first time since January.

SOL/USD Daily Chart (Binance) – Source: TradingView

That said, the Relative Strength Index (RSI) has not yet confirmed a bullish outlook. If the oscillator moves above the 14-day moving average and rises past the mid-line, that would be a strong buy signal.

As long as the token stays above $190, the stage looks set for a move toward $300 in the next few weeks if positive momentum gains further traction.

On Friday, employment data for the U.S. for September could confirm the market’s view of a second rate cut. If that happens, we could witness an accelerated move to this target as another 25bps cut would be considered a done deal.

A plausible target for SOL during this cycle would be the $400 level, at which point some strong selling pressure could start to show. In the meantime, the backdrop is extremely favorable for altcoins.