Cryptocurrencies have started the new year on a bullish note, with Solana (SOL) price soaring above $200 for the first time in almost two weeks. This rebound may accelerate in the near term as crypto investors anticipate the approval of a SOL ETF. The rally may also be because of the January Effect, where most assets rise as investors return to their offices after the Christmas break. Let’s explore how high Solana might go if SOL ETF is approved in January 2025.
How Much Can Solana Price Rally If SOL ETF Is Approved in January 2025
Solana price has been in a consolidation mode just below the support at $200 after crashing by over 20% from its highest level of January in 2024. It coincided with Bitcoin’s correction, which caused other cryptocurrencies to tumble as well. But how high can Solana go if the highly anticipated spot Solana ETF is approved by the US SEC in January 2025?
According to Polymarket data, the odds of a SOL ETF being approved later this year sit at a whopping 75%. However, if this approval gets fastracked and a spot Solana ETF is approved before the end of January 2025, Solana’s value could skyrocket.
Solana’s ETF is the most anticipated and key catalyst that has the potential to restart the bull run that SOL began in 2025. However, this approval will likely happen after the current SEC chair, Gary Gensler, exits from his position later this month. Gensler’s SEC hinted that it would reject already applied ETFs, arguing that Solana was an unregistered security. Another poll shows that the odds of approval by July 31 are at 65%. That is possibly due to the new SEC chairman candidate, Paul Atkins, who is much more welcoming of the crypto space.
Eric Balchunas, the Senior ETF analyst at Bloomberg, has estimated that a Solana ETF will be approved after others like a Bitcoin and Ethereum combination, Litecoin, and Hedera Hashgraph.
A SOL ETF approval would be a bullish development for the coin as it would introduce institutional capital to the coin. A good example of this is Bitcoin and Ethereum, which have attracted billions of dollars in inflows in the past few months.
Meanwhile, Solana – and other coins – may benefit because of the January Effect. In some instances, financial assets rise in January as investors return after the Christmas holiday.
SOL Price Technical Analysis
The 3 day chart shows that value of SOL price has been in an uptrend, forming numerous bullish chart patterns. It formed a symmetrical triangle chart pattern between March 2024 and November last year. This triangle came after a strong rally, resembling a bullish pennant pattern, a popular bullish sign. A pennant has long flag pole-like line and a triangle.
Solana retreated in December and moved slightly below the support at $206, the highest point in March. A break and retest is a common continuation sign in the markets. This formation means that the coin may have a rebound this year.
Solana Price Targets
By measuring the size of the bullish pennant pattern, and then extrapolating it from the first support at $126 (January 2024 high), we can estimate that SOL price will surge to $1,290 in 2025. Such a price action would represent a 923% surge from the current level.
The bullish SOL price forecast will become invalid if the token crashes below the first support at $126.
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