- SEC delayed Grayscale Solana ETF decision by 60 days, shaking short-term investor sentiment.
- Solana price holds a bullish monthly setup with a 19.87% gain despite ETF delay uncertainty.
- SOL’s long-term bullish target extends to $350 if momentum and market conditions remain strong.
Solana (SOL) has delivered a strong performance over the past month, gaining approximately 19.87% despite regulatory uncertainty surrounding the Grayscale Solana ETF. Starting in July at around $144, SOL rallied impressively, breaking through key resistance levels at $168 (June’s peak) and $187 (May’s peak) before reaching a monthly high of around $206.
As price action formed higher lows, trading volume also rose, reinforcing the bullish momentum. By July 25, SOL had reverted to $186 in what seemed like a healthy correction. Nevertheless, on July 28, the SEC delayed the ruling on the Grayscale Solana ETF by an additional 60 days.
This regulatory lag momentarily rattled investor confidence, causing volatility. At press time, SOL traded at $181, a decline of 7% over the last day. Regardless, SOL is still in a relatively healthy support area between $175 and $181, an area that may be used as a springboard to further gains should buyers maintain the line.
With a robust market cap of $97.49 billion and over $5 billion in 24-hour trading volume, market sentiment remains positive. Although the ETF delay created some short-term volatility, the solid technical base and interest in Solana indicate further bullish prospects.
SEC Postpones Grayscale ETF Decision Again
As per the most recent SEC filing, the agency has pushed back its review timeline regarding the Grayscale Solana ETF, stating that it requires more time to consider the NYSE Arca Rule 8.201-E compliance.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC stated.
This is the agency’s second extension, which shows its persistence in being cautious about cryptocurrency-related investment products. The ETF application, which was first filed on January 24 and published in the Federal Register on February 12, now has two major dates: the next update on August 17 and the final deadline of October 10 to be approved or disapproved.
Although such delays may create some uncertainty in the short term, they also highlight the regulatory significance and seriousness of the process, which may have some long-term advantages in case of approval.
Bulls in Control: Can Solana Hold Momentum?
On-chain metrics suggest that Solana’s bullish narrative is supported by more than just market sentiment. For example, futures data shows a strong institutional presence: the average order size in futures has been growing skewed towards that of big whales (green), especially since mid-2024, according to CryptoQuant.
This trend suggests growing institutional conviction behind SOL’s long-term value. Further supporting this is the rise in open interest, which is above $10 billion. High open interest is generally an indication of increasing capital inflow and leveraged positioning, which represents increased market involvement.
However, this also creates the threat of volatility, particularly concerning key sensitive events such as the SEC’s final ruling on the ETF, which is scheduled for October 10. On the other hand, liquidation statistics on Coinglass reveal densely clustered pockets of leverage between the $177 and $180 price level, signifying a high concentration of stop-loss or liquidation positions.
This renders the existing support area especially vulnerable: a collapse under $175 will likely lead to a chain reaction of liquidations, but a successful defense will launch a recovery into the $200 area.
Related: Solana Hits 60M CU Upgrade as McCann Leads $1.5B SOL Bid
Solana Long-Term Price Forecast: Key Levels to Watch
Solana (SOL) has carved out a promising technical setup, with the recent breakout above the once stubborn $179 resistance, which is now being tested as potential weekly support. Notably, defending this zone is crucial as it could set the stage for the token’s next leg upward.
The current setup places $252 as the next critical resistance level for Solana (SOL). A resolute breakout above this area may signal a long-term rally to the all-time high at around $295, and an extended target of $350 may be visible with a robust bullish nature. This move would signify a full recovery in SOL’s long-term market structure.
The presence of a well-defined discount zone, where SOL continues to trade, supports this optimistic outlook. This range is an indication of a good entry point by long-term investors because the asset is still relatively undervalued against historical highs.
Momentum could accelerate further if the SEC approves the pending Grayscale Solana ETF, a move that may attract institutional inflows and reinforce Solana’s role in the crypto market. On the flip side, a delay or rejection might cool short-term sentiment, but the underlying trend suggests buyers still hold the upper hand, for now.
