The Solana Foundation recently introduced two innovative tools to promote the adoption of blockchain and integrate Web3 capabilities into mainstream platforms. Moreover, the Solana ETFs are in focus and investors might find a reliable trading opportunity from these events.
Solana: Key Developments
The foundation introduced "Actions" and "Blockchain Links" (Blinks) through a series of social media announcements. The announcement indicates that these tools represent a substantial stride towards enabling developers to integrate blockchain functionality into social media platforms and websites.
In addition to these new tools, the Solana ecosystem is still making significant progress in network efficacy, transaction cost reduction, and enhancement of its services and tools.
These tools are anticipated to serve as a critical link between traditional web applications and decentralized finance (DeFi), thereby enabling the integration of blockchain capabilities into commonplace digital experiences.
Spot SOL ETFs
Fellow wealth manager 21Shares has submitted its "21Shares Core Solana ETF" to the Securities and Exchange Commission (SEC) in response to VanEck's proposal for a Solana (SOL) Trust. Recently, it has become increasingly common for crypto-backed exchange-traded funds (ETFs) to exclude crypto staking, as stated in both filings.
Solana's native token has been classified as a commodity rather than a security in spot SOL ETF filings. This has been a recurring theme. This strategy mirrors the pathway followed by potential spot Ethereum ETF issuers.
SOL functions as a transaction fee facility and payment currency for blockchain computational services, similar to other digital commodities such as Bitcoin and Ether, according to Matthew Sigel, VanEck's chief of digital assets research, in a June 27 article. Sigel also contended that the SOL network is not controlled by a single entity or intermediary, which further solidifies its commodity status and decentralized framework. "The broad range of applications and services supported by the SOL ecosystem, from decentralized finance (DeFi) to NFTs, underscores SOL’s utility and value as a digital commodity," according to the researcher.
Solana Price Prediction Technical Analysis
In the daily chart of SOLUSD, the recent price shows a bullish reversal from the 122.14 bottom with a bullish V-shape recovery. Moreover, the most recent buying pressure is supported by the double bottom pattern at the 119.47 support level.
In the volume structure, the most active level in the last 4 months is at 145.83 level, which is just below the current price. As the recent price hovers above the crucial high volume level, we may expect a bullish trend continuation after a valid breakout.
Based on the volume structure, a bullish breakout with a daily candle above the 152.00 level could activate the long-term bullish possibility, aiming for the 188.78 resistance level.
On the other hand, a downside correction is possible where a failure to break the trendline resistance with a daily candle below the 144.00 level could lower the price towards the 119.47 level.
