Why is Solana (SOL) price up today?

Solana (SOL) price is up today, posting gains as the broader cryptocurrency market recovers despite fears of sell-side pressure from the thousands of BTC being sent to centralized exchanges. At the time of writing, SOL price is trading at $149, up 8.9% over the last 24 hours.

Let’s look at the reasons why Solana’s price is up today.

Institutional investors angle for a spot SOL ETF

Data from Cointelegraph Markets Pro and TradingView shows SOL rose sharply from a low of $135, climbing as much as 12% to an intraday high of $151 on June 27. The layer 1 token has jumped 8.5% over the last two hours alone, following news that fund manager VanEck filed for a spot Solana exchange-traded fund (ETF) in the United States.

VanEck, one of the first issuers of spot Bitcoin ETFs in the U.S., is the first firm to file an ETF that would track the price of Solana.

“I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the U.S.,” Matthew Sigel, head of digital assets research at VanEck, announced in a post on X on June 27.

Sigel said the new fund, the VanEck Solana Trust, aims to capitalize on Solana’s decentralized nature, high utility and economic feasibility.

This comes after the approval of spot ETFs for both Bitcoin and Ethereum by the U.S. Securities and Exchange Commission (SEC). The agency approved 19b-4 forms for spot Ethereum ETFs last month and still needs to greenlight registration statements in order for those to begin trading, though some analysts believe that could be as soon as July 2.

Spot Bitcoin ETFs were approved in January, a key milestone that has seen more than $14.4 million in cumulative inflows poured into the investment products, leading to more than $52 million in assets under management, according to data from Soso Value.

Just as the debut of spot Bitcoin ETFs led to a surge in BTC's price, a possible approval of spot Solana ETFs is expected to positively impact SOL’s price.

Zeta Markets DEX rekindles the Solana airdrop frenzy

SOL price has had an amazing run over the last year. The smart contract token has rallied more than 780% over the last 12 months and 45% year-to-date. Much of these gains have been due to successful airdrops that have led to the emergence of popular Solana-based tokens such as Jupiter (JUP) and memecoins such as Dogwifhat (WIF), Bonk (BONK) and Book of Meme (BOME).

Solana-based DEX Zeta Markets, which specializes in derivatives trading, is adding to this momentum with the launch of its native token, ZEX, and opened airdrop claims.

According to a statement, the airdrop is designed to reward early users and encourage long-term participation in the protocol.

The team said that eligible users have 90 days to claim their airdrop allocations.

The foray of airdrops within the Solana ecosystem suggests that the developer community is contributing to the integrity and strength of the layer 1 blockchain. As a result, the total value locked (TVL) on Solana increased by 120% in 2024 to $4.48 billion.

A higher TVL indicates that more users and developers are actively engaging with the Solana network, reflecting increased demand for the cryptocurrency.

It further enhances investor confidence by showcasing the network’s robustness and growing adoption and generates positive sentiment that typically translates into higher buying interest, propelling the price upward.

SOL’s market structure hints at a return to $200

SOL’s price action during the daily timeframe shows that the token is nurturing a v-shaped recovery pattern, as shown in the chart below. The 20-day exponential moving average (EMA) at $143.5 is acting as immediate support.

The relative strength index (RSI) is rising toward the 70 mark, asserting the buyers’ dominance in the market. The bulls now focus on the 100-day EMA at $148.5 and, later, the 50-day EMA at $150.5. The next barrier lies at the neckline of the prevailing chart pattern at $176.

A daily candlestick close above this level would confirm the continuation of the uptrend. The next logical move would be to the March 18 range high at $209, bringing the total gains to 42%.

On the downside, failure to hold above the 20-day EMA at $143 would signal the inability of the buyers to sustain the uptrend. If this happens, SOL could drop to the pattern’s low at $126, invalidating the bullish outlook.

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.