Solana (SOL) Price Prediction: Public Chain Activity Explodes Overnight, ETF Approval Becomes a Positive Catalyst

Today (8) in the European morning session, Solana (SOL) slightly rebounded above $105.20, but the dumping pressure persists. The U.S. Securities and Exchange Commission (SEC) has asked potential Solana ETF issuers to amend or resubmit their applications by the end of July, which has raised investor expectations for approval. With optimism on the rise, the number of daily active addresses on the Solana network has reached a historical high, which could catalyze a breakthrough rebound.

The US SEC requires Solana ETF issuers to make modifications

The US SEC plans to create a framework to streamline the approval process for cryptocurrency ETFs. As the upcoming framework draws increasing attention, the SEC has requested that SOL ETF issuers modify and resubmit their applications by the end of July. This move has sparked speculation that the SOL ETF may receive SEC approval before the October 10 deadline.

Bloomberg ETF analyst James Seyffart believes that the request is a positive signal from regulators, while also anticipating that regulators will engage in further discussions on the revision issues rather than granting direct approval.

Solana network activity exploded overnight

The Daily Active Addresses (DAA) indicator refers to the number of unique addresses that are active on the network within a day. A surge in DAA indicates an increase in the number of users, thereby enhancing network activity, and may lead to an increased demand for its native token, which is needed for transaction fees, decentralized finance (DeFi) services, and other applications.

Santiment's data shows that the number of DAA addresses for Solana reached a record 15.39 million on Monday. The surge in DAA reflects an increase in user activity on the network, stemming from the growing opportunities for ETF approvals, which may translate into increased spot demand for SOL.

(Source: Santiment)

Solana lacks momentum, delaying the breakout of the trend line

FXStreet analyst Vishal Dixit stated that Solana is hovering below the six-month resistance trend line that retraced from the closing price on January 18 and the highs on May 22 and June 11. At the time of writing, SOL has risen nearly 0.50% after a 1.96% pullback on Monday.

As Solana hovers near the upper trend line, it fluctuates above the 23.6% Fibonacci retracement level of 142 USD, which is a retracement from the historical high of 295 USD on January 19 to the low of 95 USD on April 7. If the daily closing price is above the trend line of 151 USD, it may trigger a trend reversal for SOL.

Nevertheless, a decisive break above the super trend indicator line and the 200-day exponential moving average (around $159) could signify a stronger trend reversal signal. In this case, the 50% Fibonacci level at $195 may be the recent price target.

The Moving Average Convergence Divergence (MACD) indicator shows that the MACD and the signal line are close to crossing the zero line. However, the declining histogram indicates a crossing risk, which is a sell signal.

The Relative Strength Index (RSI) hovers around the midpoint of 50, indicating investors are hesitant.

If SOL closes below the 23.6% Fibonacci level of 142 USD, it may drop to the psychological support level close to 100 USD.

(Source: Trading View)