Solana Price Outlook: Institutional Boost and $219 Target
SOL’s Four-Month Rally and Market Context
The SOL/USD pair on Binance wrapped up July with an 11.2% gain and has surged an additional 19-20% since the start of August.
Excluding June, the token has been on the rise for four months, largely offsetting the downturn seen in February and March.
In earlier developments, the REX-Osprey Solana Staking ETF (SSK), offering staking capabilities, was launched in July.
The fund quickly amassed $100 mn in assets under management (AUM). Experts point to several reasons why companies are holding SOL in their portfolios:
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High annual staking yield of around 7-8%
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Operational integration where companies participate in the network, run validator nodes, and therefore earn validation commissions alongside staking rewards
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SOL holders are positioned as users of next-generation blockchain infrastructure, potentially providing a strategic edge over firms solely holding BTC or ETH
Institutional Demand and ETF Developments
This has sparked strong institutional interest. Recent reports say that asset managers VanEck, Grayscale, and 21Shares have filed applications for Solana-based exchange-traded funds.
The SEC is expected to rule on these by year-end.
Technical Analysis: Next Price Levels for SOL/USD
Technical analysis implies a strong likelihood of further gains for SOLUSD, as noted in last week’s overview, flagging $195.3 as the next target, which has since been hit.
SOL has already tested the classic 50% Fibonacci retracement level. Two scenarios are now in the cards:
Scenario 1
The upward move will continue, with a breakout and consolidation above $195.3 pushing the price action toward the next Fibonacci level at $219.
This aligns with current momentum and looks like a more plausible scenario.
If the SOL price breaches the $219-220 range, the bulls could move ahead and take a shot at $225, the upper bound of the current price channel, and then $265.
Scenario 2
A correction will kick in toward the lower end of the channel at $165.
In the event of a breakdown, the price action could slide to $150 and then $140.
However, it is too early to entertain this scenario, since there are no clear signals for a downward reversal in sight.
