Introduction
VanEck and 21Shares are planning to launch the first Solana ETFs in the US. These ETFs could attract new investments, boosting Solana’s growth.
Market Expectations
As the September FOMC meeting approaches, the demand for Solana is expected to increase. The digital assets market is currently experiencing a summer lull. Global cryptocurrency trends correlate directly with the US Federal Reserve’s policies.
Cryptocurrency Market Trends
Cryptocurrencies thrive during periods of declining bank rates. Conversely, rising deposit rates favor the US dollar due to its higher yields and lower risks. Currently, we are in a transitional period with stable rates.
Economic Background
Post-COVID-19, inflation surged in the US due to monetary expansion. The Federal Reserve has been combating this inflation. Consumer prices are now decreasing, suggesting an upcoming period of rate cuts. The first expected rate cut is on September 18.
Recent Economic Indicators
June’s nonfarm payroll data and Jerome Powell’s cautious speech on June 12 were pivotal. Powell highlighted significant economic progress and job growth. Inflation has slowed but remains high, suggesting the Fed will wait before cutting rates.
Impact on Cryptocurrency Market
Powell’s remarks caused a bearish correction favoring the dollar. However, inflation trends suggest the Fed will start cutting rates soon. High interest rates hinder economic growth, requiring new capital and loans.
Solana’s Competitive Edge
Solana (SOL) holds competitive advantages. It is predicted to join Bitcoin and Ethereum as a major ETF. VanEck announced plans to launch the first US ETF for Solana on June 27. The SOL price surged by nearly 10% following this news.
Technical Analysis
Solana’s price is in a bullish trend correction phase. Key support zones are around $136. Buyers should look for reversal patterns, such as the “123 pattern,” to continue buying. The price needs to stay above the pivot level and POC at $136.
Investment Targets
Purchase targets include $144.2, $159.8, and $167.9. This strategy is valid for the first quarter. Partial profit-taking or moving to break-even is recommended upon reaching the first level. The stop-loss should be set beyond the entry level, adhering to a 2-3% risk per trade.
Conclusion
Monitoring the upcoming FOMC meeting and Solana’s ETF launch is crucial. Solana’s competitive advantages make it a promising investment as market conditions evolve.
