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    Solana Price Targets $400 as First SOL ETF is Launched

    Crypto & Blockchain

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    Key takeaways:

    Solana’s native token, SOL (SOL), traded at $203 on Tuesday, up 14% from its local low of $177 reached on Oct. 22. This recovery is fueled by growing excitement around the launch of the first Solana ETF in the US today.

    First US-based Solana ETF debut

    The Bitwise Solana Staking exchange-traded fund (ETF) is set to debut on the New York Stock Exchange today under the ticker symbol BSOL. 

    Related: ‘The claim that L2s inherit ETH security is erroneous’ — Solana co-founder

    This marks the first US spot Solana ETF with 100% direct exposure to SOL, including built-in staking for approximately 7% annual yields from network rewards. 

    Bloomberg ETF analyst Eric Balchunas confirmed NYSE listing notices, adding that Grayscale’s Solana Trust (GSOL) converts to a spot ETF tomorrow, Oct. 29, providing another regulated avenue for exposure to SOL’s price and staking rewards.

    The approval process for crypto ETFs in US markets has stalled since the federal government shut down on Oct. 1. 

    “Approved by the SEC, Bitwise’s $BSOL ETF officially begins trading today,” said crypto analyst Bitcoinsensus in an X post on Tuesday, adding:

    “This marks a major milestone for Solana and altcoin ETF adoption. The ETF also gives investors exposure to full staking features.”

    This debut is poised to boost SOL’s price through unprecedented institutional inflows, as seen with REX-Osprey Solana Staking ETF, SSK, which debuted on June 30 with over $12 million in first-day volume.

    JPMorgan, a multinational investment bank, predicted that a Solana ETF would attract $3 billion to $6 billion in its first year, based on the adoption rates of Bitcoin and Ether ETFs. 

    SOL price can double from a bull flag breakout

    SOL’s price action exhibits a bull flag pattern in the weekly time frame, indicating a potential rise to $400 and higher.

    A bull flag is a bullish continuation pattern that occurs after a significant rise, followed by a consolidation period at the higher price end of the range. As a technical rule, a breakout above the flag’s upper trendline may trigger a parabolic price rise. 

    The chart pattern will resolve once the price breaks above the upper boundary of the flag at $205. 

    The measured target for this pattern, the height of the flag’s post added to the breakout point, is $412, or a 104% increase from the current level.

    SOL/USD weekly chart. Source: Cointelegraph/TradingView

    Also supporting SOL’s upside is the increase in RSI’s value to 53 on Tuesday, from 34 in mid-June, when the bull flag formation began. This indicates a steady increase in the upward momentum.

    A similar target was set by analyst BitBull, who said “$SOL is still holding its 3-year support trendline,” with the most important level for Solana being $280.

    “A weekly close above it will trigger a massive rally,” the analyst said, adding:

    “I still think $400-$500 SOL is happening this cycle.”

    SOL/USD weekly chart. Source: BitBull

    As Cointelegraph reported, the RSI climbing above the mid-point mark indicates that buyers are in control. This can help SOL break through $220 and open the way for a rally to $260 and above.

    This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.