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Cboe’s Surprise Solana ETF Filing Sparks Rally—SOL Gathers Momentum to Break $157

Last Updated July 9, 2024 2:16 PM
Nikola Lazic
Last Updated July 9, 2024 2:16 PM
By Nikola Lazic
Verified by Insha Zia

Key Takeaways

  • Cboe files for Solana ETFs listing with the SEC.
  • Solana price climbs 13%, nearing $140.
  • Potential further decline to $102 if the $157 resistance rejects the price

Chicago Board Options Exchange (Cboe) is the latest to hop on the Solana ETF bandwagon, as it files a 19b-4 form to the SEC. With anticipation for the new financial products at a high, SOL price soared by 13%, climbing above $140. 

Now, market participants remain on edge, wondering if Solana will muster up the strength to push through and break past its previous resistances.

Cboe To List Solana ETFs?

On July 8, Cboe Global Markets filed a request with the U.S. Securities and Exchange Commission (SEC) to list exchange-traded funds (ETFs) tied to Solana. The SEC now has 240 days to approve or deny the application.

At press time, VanEck and 21Shares are the only issuers that have filed S-1s for Solana ETFs. After approving the 19b-4 form, the SEC must approve their “S-1” filings before trading can begin. However, no specific deadline exists for these disclosures at the time of writing.

These ETFs would represent the third wave of spot cryptocurrency ETFs following the SEC’s approval of Bitcoin ETFs in January.

Rob Marrocco, global head of ETP Listings at Cboe, highlighted the increasing investor interest in Solana.  Additionally, VanEck and 21Shares await SEC approval for Ethereum ETFs, which is expected within the next week.

SOL Price Analysis 

On March 18, Solana (SOL) reached a peak of $210 but experienced a sharp decline to $120 by May 1, representing a 43% drop. By May 21, the price had impressively recovered to nearly $190, breaking through a significant resistance level that previously served as support.

SOL
SOLUSD | Credit: Nikola Lazic/Tradingview

Despite this recovery, SOL soon fell below this critical level again. The downturn since May 1 displayed three distinct waves, suggesting a possible prolonged bearish trend. The break below $160 confirmed the surge to May 21 was a three-wave corrective pattern, implying the current decline might be part of a larger bearish phase or a complex three-wave correction starting from March 18.

Based on the trajectory from June 24, two potential outcomes are possible. Chart analysis indicates SOL is consolidating below $157, forming a fourth wave before potentially descending to a new low of $102 in its fifth wave, completing a three-wave ABC correction.

The rejection at $153 confirmed the descending flat triangle scenario. As the price approaches $120, it could interact again, possibly ending the correction.

However, a more likely outcome is further downward movement past the $120 support level. As shown by the descending resistance, continuous selling pressure supports this view.

By projecting the same length as the move from the yearly high of $210 to the first low of $121 on April 13 and then to the higher low of $190 on May 20 (the assumed B wave), we reach a target of $102.

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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