In recent days, Solana has regained investor attention due to amendments to ETF filings by major financial institutions. This article explores how these events may impact SOL's price in August.
Speculations Around Solana ETF
On July 31, multiple major financial institutions filed amendments to their Solana ETF applications. Entities like Bitwise, Canary Capital, and Grayscale were among those involved. Grayscale's amendment included a 2.5% fee structure payable in SOL, indicating a serious approach to this product. These modifications signify that discussions with the SEC have progressed beyond preliminary stages, although approval has not yet been granted.
Price Reaction of Solana to ETF News
Surprisingly, Solana’s price reacted negatively, falling by 3.29% on the day the amendments were made public. The daily chart displays red Heikin Ashi candles for five consecutive sessions, reflecting a loss of bullish momentum and a quick cooling of short-term sentiment. The $200 level has proven to be a significant resistance mark for prices.
Key Price Levels for August
August is expected to be a volatile month for SOL, with critical support and resistance levels in place. If the price can hold in the 168-170 range and regain momentum above 180, a rise towards 190 and above could follow. Conversely, failure to maintain support at 170 could lead to retracement levels around 158 or even down to 145.
The developments surrounding the Solana ETF represent a positive long-term factor; however, short-term price fluctuations remain under technical pressure. Traders are advised to closely monitor price behavior within the 168-170 range.
