Driven by a combination of positive elements, Solana (SOL) is seeing an increase in trading activity. This includes large buy orders, a smart buying approach from institutional investors, and the expected release of SOL-based exchange-traded funds (ETFs).
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Whales quietly consolidate SOL
Trading data shows a notable increase in trading volume across major exchanges, including Binance, Coinbase, Gate.io, and OKX. However, a deeper look at Coinact.gg, a real-time trading research program, indicates a very intriguing pattern: a “Major TWAP” signal for SOL.
TWAP Detection Major Alert Activated $SUN. Larger buyers are hoarding $SUN #Solana.
Trading patterns emerged in @coinbase , @binance , @gate_io , @okx $SUN markets during the last 15 min.
🟢️: Coinbase, Binance, Gate, Okx
🔴️: Binance
Automated orders amount to… pic.twitter.com/TXpnfprQPn-MartyParty (@martypartymusic) July 10, 2024
Large investors, particularly financial institutions, typically employ a strategy known as Time Weighted Average Price, or TWAP for short. It is common practice to spread a large buy order over a period of time in order to lessen the impact it has on the market price.
The implication of this is that institutional stakeholders are purposefully accumulating SUN without causing major price movements, which is a classic indication of a positive long-term outlook.
ETF hype sparks investor interest
Furthermore, the announcement that likely SOL-Oriented Exchange Traded Funds (ETFs) could hit the market in mid-March 2025 is generating curiosity among investors. Following the recent submission of proposals by the Chicago Board Options Exchange (CBOE) to list exchange-traded funds (ETFs) offered by VanEck and 21Shares, the bitcoin community has been abuzz with excitement and speculation.
Solana Price Forecast
Several analysts project a continued increase in the price of SOL; others estimate a 17% gain until August 10th under an underlying cautious optimism. Furthermore, showing a positive trend are the technical indicators.
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Measuring the overall market mood, the Fear and Greed Index comes in at “Fear” (29). This implies that while investors are quite hopeful about SOL’s prospects, certain fundamental questions remain present in the crypto industry at large.
The disparity observed in Binance’s trading statistics relative to other exchanges raises some questions. More research is needed to find the cause of this variable behavior, as it may point to distinct market dynamics at work on Binance in particular.
The promise of regulated and readily available SOL investment options from ETFs is attracting a new generation of investors, especially those who were previously reluctant to negotiate the complexities of cryptocurrency exchanges. The sustained 8% increase in SOL’s price over the weekly timeframe reflects this increased demand, allowing the network to climb back to the $142,000 range.
Fueled by a convergence of favorable circumstances, Solana’s future looks bright. The positive outlook is presented by institutional investor interest, the possibility of regulated ETFs, and the recent price surge.
Featured image from Pexels, chart from TradingView