Solana (SOL) and Avalanche (AVAX) prices rebounded this week as the crypto and greed index moved to the green zone amid excitement about a potential Ethereum ETF approval. SOL soared to $190 while AVAX surged to $42.
Solana and Avalanche ETFs could be next
AVAX and SOL tokens jumped sharply this week, joining other cryptocurrencies like Ethereum, Bitcoin, and JasmyCoin.
The main catalyst for this rally was the speculation that the SEC would finally approve spot ETH ETFs by companies like VanEck, Franklin Templeton, and Blackrock.
Such a move would be a great step in the crypto industry because Ether is the second-biggest player after Bitcoin. Its ERC tokens power most of the blockchain sector today.
Therefore, approval of a spot Ether ETF would also be a good thing for Avalanche and Solana since it would raise hopes that companies will apply for their ETFs. Some of the potential companies that would do this are Ark Invest, Blackrock, and Fidelity.
There are two main reasons why some of these companies might file for SOL and AVAX ETFs after Ethereum’s approval. First, the three are similar networks in that they are proof-of-stake (PoS) blockchains that have staking features. One reason why the SEC may deny an Ethereum ETF is that it considers it an unregistered security because of its staking capabilities.
Second, Solana (SOL) and Avalanche (AVAX) are some of the biggest players in the crypto industry. Solana is the fifth-biggest cryptocurrency with a market cap of over $79.8 billion while Avalanche has $16 billion. They also have a lot of use cases, with the two having over $10 billion and $1 billion in DeFi total value locked (TVL), as per DefiLlama data.
Third, they are both highly liquid. Solana’s volume in the past 24 hours stood at over $3.1 billion while Avalanche had $542 million. As such, these companies might expect more inflows from institutional investors.
Avalanche price forecast
The 4H chart shows that the AVAX price bottomed and formed a double-bottom pattern at $31.45 this month. It then bounced back and moved to the crucial resistance at $42. As it did that, it crossed the important resistance level at $40, the highest swing on April 22nd and May 6th. It has now formed a break and retest pattern, a popular sign of continuation.
Avalanche price has also remained above the 50-period and 25-period moving averages and the 23.6% Fibonacci Retracement point. Therefore, the outlook for the token is bullish, with the next target being the 50% retracement point at $47, which is about 20% above the current level.
Solana price prediction
The 4H chart shows that Solana's token price surged to about $190, its highest swing since April 4th. While it jumped, it moved above the key resistance at $160, the neckline of the inverse head and shoulders pattern that has been forming.
Solana has also moved to the first support of Andrew’s pitchfork and crossed the 38.2% retracement point. Like Avalanche, it has remained above the 50-period and 25-period moving averages.
Therefore, the outlook for the Solana token is extremely bullish with the next level to watch being at $200. This view will become invalid if moves below the support at $170.
Contributors
