Solana (SOL) price may have experienced a dip this week, but the overall narrative surrounding the cryptocurrency continues to gain strength. Despite the temporary setback in price, the demand for Solana remains robust, with institutional investors showing increasing interest in the asset.
One key indicator of this growing institutional appetite is the consistent inflows into Solana ETFs. The first U.S. Solana staking ETF, SSK by REXShares, has seen significant inflows of $16.2 million yesterday and an additional $10.6 million today. This trend has been ongoing for the past two weeks, highlighting the increasing interest from institutional investors even as the SOL price in USD experiences fluctuations.
Furthermore, the momentum for Solana ETFs appears to be accelerating. Canary Capital has filed an S-1 for a Solana ETF that not only holds SOL but also stakes it, making it the first U.S. ETF to offer on-chain yield. Additionally, VanEck has submitted a revised S-1 for its Spot SOL ETF, signaling a turning point in institutional access to Solana crypto. If these filings receive approvals similar to Bitcoin and Ethereum ETFs, SOL ETFs could become significant investment vehicles by the end of the year.
From a technical standpoint, while the recent decline in SOL price may seem bearish in the short term, the weekly price chart reveals a different story. The pattern reflects the final phase of Wyckoff accumulation, which is often a precursor to strong rallies. This dip could potentially represent the last major buying opportunity before a significant rally in Q4.
Some traders believe that Solana crypto is on the cusp of a significant breakout, with a target of $500 for SOL projected for this cycle. The combination of ETF inflows, on-chain yield opportunities, and market structure could fuel substantial upside for Solana in the coming months. Investors who position themselves now may be well-rewarded in the near future as sentiment shifts.
In conclusion, while the short-term decline in SOL price should not be ignored, the long-term outlook for Solana remains optimistic. Caution is advised to avoid falling prey to FOMO, but the potential for significant upside in the coming months is undeniable.