- Solana (SOL) rallies ~6% near $121, fueled by Grayscale ETF filing & PayPal news
- Grayscale files with SEC to convert GSOL trust into a spot Solana ETF on NYSE Arca
- SOL holds key $100-$115 support zone; analysts eye $186+ breakout potential
Solana (SOL) regained focus Saturday, rising nearly 6% over 24 hours to trade near $120 as positive news developments converged on a critical technical support zone.
Futures market sentiment also turned decidedly bullish, with analyst Ali Martinez reporting 71.4% of Binance traders holding long Solana positions.
Grayscale Files for Spot Solana ETF Conversion (GSOL)
Fueling bullish sentiment, Grayscale Investments filed a registration statement with the SEC on Friday seeking to convert its Grayscale Solana Trust (GSOL) into a spot Solana ETF listed on NYSE Arca. This move mirrors Grayscale’s successful conversions for Bitcoin and Ethereum products.
Market observers consider Solana a strong candidate for eventual spot ETF approval, citing its established U.S. futures market and a perceived shift toward clearer crypto regulation. An approved ETF would offer traditional investors direct SOL exposure, opening up capital inflows.
PayPal Adds Full SOL Support Including Transfers
Separately, payments giant PayPal updated its services to include full support for Solana (and Chainlink) within its PayPal and Venmo apps in the US. Users can now buy, sell and hold SOL directly, enhancing the token’s accessibility and utility on the platform.
Related: Will Solana Get Faster? Devs Propose Higher Block Transaction Limits
Technical Analysis: SOL Holds Key Support Zone ($100-$115)
From a technical perspective, analyst Crypto Patel noted SOL is holding firm within a key Fibonacci support zone between $100–$115. This area acted as a launchpad for significant rallies in the previous bull cycle.
Patel suggested that if this zone holds, accumulation could lead to a breakout confirmation above $186. Such a move could set the stage for retesting the previous all-time high near $296, with a potential longer-term Fibonacci-driven target near $1,011.
Indicators Show Caution Despite Bullish Catalysts
However, current indicators warrant some caution. The Relative Strength Index (RSI) hovers near 40.74, indicating weak momentum, with its gradient suggesting potential for near-term selling pressure despite the daily price gain. SOL also remains below its 20-day EMA resistance around $128.23.
Related: Top Trader Issues Solana Warning: Break Below $117 Could Trigger ‘Slow Bleed’
A clear break above the EMA is needed to strengthen the short-term bullish case suggested by the recent news flow and support hold.
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