Solana Retreats as SEC Delays SOL ETF Decision – Key Support Levels to Watch

Solana (SOL) has retreated 3.7% so far today and currently sits at $176.8 after the U.S. Securities and Exchange Commission (SEC) notified that it will delay its decision on one of the applications submitted for a spot exchange-traded fund (ETF).

This application was sent by the asset management firm Grayscale for a fund called “Grayscale Solana Trust.”

As the initial 90-day period to make a decision expired this week, the Commission has now opened a public consultation to analyze the fund’s merits to get approved for listing.

The deadline for a decision has now been pushed to October. This is still within the time table that market participants have set for the launch of a Solana-linked ETF but it further postpones the positive impact that this product could have on the token’s liquidity and demand.

According to Polymarket wagers, the odds that a Solana ETF will be approved this year currently sit at 82%. Other top cryptocurrencies like XRP are also waiting for the SEC’s nod.

Solana DEX Volumes More than Doubled

In the mean time, the Solana ecosystem has been expanding rapidly amid the rising popularity of meme coins.

Top tokens like Peanut the Squirrel (PNUT) and Pudgy Penguins (PENGU) have tripled their value in the past month and decentralized exchanges like Raydium and Orca have benefited from the hype.

Weekly DEX volumes have been rising since they hit a yearly low of 61.75M SOL in March to finish last week at nearly 145 million SOL.

Data from CoinGecko shows that the aggregated market cap of Solana meme coins currently sits at $14.6 billion, accounting for around a fifth of the aggregated market value of all tokens in this category.

The latest rally has managed to trim SOL’s yearly losses to just 6.6%. Meanwhile, trading volumes have gone up by 25% in the past 24 hours as the market seems to be taking a breather after a few days of strong gains.

Key Resistance to Watch at $200

SOL is now trading above its 21-day and 200-day EMAs, meaning that both the short-term and long-term outlooks is bullish for the token.

Trading volumes have exceeded the 14-day average for six days in a row and today does not seem to be the exception as trading activity spiked after the American session started.

Solana is nearing an area where trading volumes are strong. The key resistance to watch at this point is the $200 level.

Our short-term target of $180 from a recent Solana price prediction has already been hit. Based on the latest price action, the next targets for SOL could be set at $212 and $300 as long as the $200 level gets cleared.

Although ambitious, this $300 price target is reached based on an analysis of historical patterns. SOL’s 21-day and 200-day EMAs look poised to make a bullish crossover known as a ‘golden cross.’

The last time this happened, the price experienced a 70% boost in just four months. If a similar situation unfolds this time, as the token’s trajectory suggests, SOL’s price target could be set at $300 just to start.

As long as the 21-day and 200-day EMA hold, Solana’s outlook continues to be bullish. Meanwhile, a break below these indicators could ignite a much deeper correction, possibly as the rally may have lost steam amid the absence of strong demand at these price levels.