Solana Price Could Benefit From Grayscale's Indirect ETF Filing for SOL

Solana (SOL) has shown stability in recent weeks, avoiding significant losses. However, this altcoin has also struggled to recover, leading to a somewhat stagnant market position.

This could change when Solana becomes part of Grayscale's potential Digital Large Cap ETF, which could boost its price.

Solana Hits Market Dip

The Net Unrealized Profit/Loss (NUPL) index indicates that Solana has entered the early capitulation phase, a typical signal of a market dip. This area usually marks a turning point where prices tend to recover. With market sentiment at a low level, many investors believe Solana's price could recover soon.

Moreover, Grayscale's decision to file an S-3 with the SEC to convert its Digital Large Cap Fund (GDLC) into an ETF is a significant development. The fund holds Bitcoin, Ethereum, XRP, Cardano, and Solana. If approved, this would be the first indirect ETF for Solana, providing a new approach to this altcoin.

Approving such an ETF could stimulate investor interest and price potential.

Solana's overall macro momentum is showing recovery signs. The ADX index has dropped below the 25.0 threshold, signaling that the previous downtrend has lost momentum. This indicates Solana is no longer in a strong downtrend, opening opportunities for a price increase and potential upward trend.

Additionally, Solana's technical landscape has become more stable. The ADX index shows the downtrend has completely lost strength, allowing Solana to potentially move upward. If the broader market stabilizes, Solana could receive additional support, enhancing the possibility of a price surge.

SOL Price Targeting Growth

Solana's price is currently at $124, just above the critical support level of $123. This support has held firm for three weeks, indicating Solana has found a foundation from which to rise. With improved market conditions and positive ETF news, SOL is likely to experience a price surge soon.

Considering recent developments, including Grayscale's ETF filing, Solana could jump to $135. If successfully breaking and converting this level to support, Solana could advance to $148, potentially recovering recent losses. This would further solidify the upward price trend for the altcoin.

However, if broader market signals remain weak and do not support Solana's development, the altcoin might struggle to regain momentum. In that case, Solana could drop below $123 and potentially reach $118, with $109 being the next critical support level.