Solana Eyes $513? Grayscale’s ETF Move Sparks Bullish Momentum

Grayscale Investments filed with NYSE to launch a Solana Exchange-Traded Fund (ETF).

The filing seeks to convert the company’s current Solana Trust, worth of $134.2 million, into a spot Solana ETF.

The development comes amid rising optimism over crypto ETFs, which have been long awaited due to a pro crypto regulatory environment.

At this time, the Solana Trust makes up roughly 0.1% of the total distributed Solana tokens. If approved, that means investors will be able to trade Solana on a regulated securities exchange.

Grayscale’s move comes as it continues to expand the range of crypto investment opportunities and, of course, attempt to lure more institutional interest.

Bullish Consolidation Paves Way for Breakout

Solana’s (SOL) price has been consolidating just below the top of a bullish formation on the weekly chart, which implies momentum is building towards the upside.

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Analysts see $258.41 as the critical support level, the lower boundary of the consolidation range.

If support breaks below this, then a retest of $217.70, a secondary support level that maintains the long term bullish bias could be seen.

But if SOL keeps up its current rates and is able to break up from the consolidation range, analysts estimate a $424.66 target, and further on could reach $514.033 over the longer term.

Market Data Reflects Mixed Sentiment

At press time, Solana’s price was $248.63, with a 24 hour trading volume of $7.4 billion. The price has dropped by 5.48% in the last 24 hours, however, is up 4.04% in the past week.

Aggregated open interest (OI) data from Coinalyze illustrates a fall from a peak of $5.1 billion on Jan 19 to $3.8 billion currently.

This is a drop in market participation or liquidation, as traders are doing their market direction analysis.

Investors are doing so cautiously and with continued monitoring of key levels, with a brief recovery on January 23.

Solana Price Targets Signal Potential Upside

Analysts have pointed out two potential price targets if Solana is able to break out of its current consolidation.

The next resistance level after $258.41 support is re-claimed is $424.66 which is the first target.

Sustained move beyond this target may continue the uptrend and provide the impetus to take prices higher towards $513.83.

Of course all these projections will be contingent upon sustaining strong support levels and the potential of a dramatic increase in trading volume on the breakout.