Solana's 9% Gain Means It Will Be 'The Fastest Horse If Risk-On Sentiment Returns,' Says Trader

The Solana SOL/USD ETF application by VanEck has sparked a 9% rally on Thursday, with traders debating whether more upside is to come.

What Happened: Crypto trader Ng Ah Sio shared that he had been increasing his Solana holdings since it touched support zone. While most of the market is long Ethereum ETH/USD in anticipation of the ETF launches, he predicts this capital will quickly rotate to outperformers once the initial surge is over.

He further noted the "lower time frame defensiveness" of SOL, expressing confidence that it would be the "fastest horse out the gate if risk-on sentiment returns." He concluded, "ETHBTC & SOLETH is how I’m playing this into next week."

Another trader sees a confirmed bottom signal for SOL, suggesting a potential bullish trend on the daily time frame. He pointed out two confirmations of a bullish trend. The first was a bar closing above the upper wick of the blue bottom signal bar. The second confirmation was the appearance of a green dot, which Wick interprets as a positive sign.

$SOL

Here is the chart showing a confirmed Bottom signal on the daily time frame

The second bar "after" the blue bottom signal bar closed above the signal bars upper wick – that's a confirmation

Then today we have our first green Dot which is also confirmation

2x Confirmed 🤝 pic.twitter.com/lrb9bvk5fa

— Wick (@ZeroHedge_) June 27, 2024

Also Read: Solana Meme Coin Runs To $2B In 24 Hours, Then Drops Over 99%: What Happened?

Crypto chart analyst Ali Martinez reiterated his buy signal on the daily chart, anticipating “a price rebound."

DeFiLlama data noted a spike in Solana's total value locked from $4.2 billion to $4.4 billion on Thursday. Solana is up 9.3% on the day to $148.

What’s Next: The influence of Solana and Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Solana Drops Below $130: ‘Dumping To Zero Like Every Other Meme Coin,’ Trader Barks

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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