‘Calm Before Storm,’ Is a Big SOL Price Breakout In View?

After weeks of persistent downtrends, the broader crypto market is now in a cooling phase. Amid these market dynamics, Solana price is fighting to stay on top of the game.

Crypto analysts even claim the calm in the Solana market may present a unique opportunity for a possible breakout.

Solana Price Technical Setup

In a QuickTake post, Burakkesmeci, an analyst at CryptoQuant, analyzed the price setup of Solana.

The analyst highlighted key on-chain metrics that show the price of Solana is in a cooling phase.

Burakkesmeci backed his assertions with bubble charts that reflect the total trading volume across all top exchanges.

Each bubble shows the size of the volume. The charts also highlight colors ranging from blue to green, red, and gray that represent the intensity of the change.

According to the charts, the spot volume bubble map showed green, typical of a cooling market.

In addition, the futures volume bubble map is neutral, signaled by the color gray.

The lower trading volume suggests slowing momentum in the Solana crypto market. In the crypto market, such an interplay is usually considered a red flag.

However, Burakkesmeci said the cooling momentum may present an early-stage price growth opportunity.

Sentiment for SOL ETF Approval Improves

To the analyst, the decreasing volume in the spot and futures market is likely the calm before the next Solana Crypto Summer storm.

He cited the possible approval of a spot Solana Exchange-Traded Fund (ETF) as one of the catalysts to ignite future rallies.

Several firms, including Bitwise Asset Management, Canary Capital, Franklin Templeton, Grayscale, and Fidelity, have filed to list a spot SOL ETF.

Their applications have remained pending with the US Securities and Exchange Commission (SEC) for months.

However, undisclosed sources have revealed that the SEC has requested amendments to the S-1 registration form from the issuers.

According to the sources, the Solana Crypto ETF issuers have a week to submit their amended documents. After the submissions, the SEC has 30 days to respond to the update.

Based on this timeline, the SEC could approve a SOL ETF as early as mid-July or early August.

An eventual SOL ETF approval will lead to Solana crypto becoming a regulated investment vehicle. It would allow institutional investors to trade SOL without holding the coin directly.

Optimistic sentiments about a possible SOL ETF launch have already positively impacted the price of SOL.

At press time, Solana price was trading at $167, up 5.6% and 6.4% in the past day and week, respectively.

Solana Crypto Shines in the Memecoin Market

The Solana blockchain is a host to several memecoins. Top performers include Official Trump (TRUMP), Bonk (BONK), Fartcoin (FARTCOIN), and Pudgy Penguins (PENGU).

Likewise, memecoin launchpad Pump.Fun has grown to become one of the most profitable projects on the Solana blockchain.

Pump.Fun has lowered the barrier to entry for memecoin creation and creators on the Solana blockchain. This may have earned Pump.Fun with the title “YouTube of Web3.”

Over 11 million tokens have launched on the platform since it debuted in January 2024. This gives the platform approximately 90% of the Solana crypto memecoin market share.

Notably, Pump.Fun ìs establishing a new benchmark for decentralized platforms that will be outrightly inclusive.

The platform is well-equipped with its innovative bonding curve mechanism, vertical integration strategies, and staggering performance metrics. It has also launched PumpSwap to help boost the trading of qualified tokens.

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