The Solana (SOL) ecosystem has been enduring a decline. Over the past 24 hours, SOL witnessed a 5% drop, pushing its price to a low of $167.74. The latest drop is part of a larger correction trend that began two days ago. In addition to the price decline, Solana’s daily trading volume has significantly reduced, now at $3.74 billion, a 20% drop from the $5 billion recorded in May 2021.
The drop in SOL’s price and trading volume has coincided with increasing expectations for the approval of spot Ether exchange-traded funds [ETFs] in the U.S. Since May 20, the SEC’s engagement with Ether ETF applicants about their 19b-4 fillings has seemingly redirected investor interest towards Ethereum.
This shift is reflected in the SOL/ETH trading pair, which has dropped by 22.65% since the SEC’s actions. Such potential changes in investment focus could divert funds from Solana, affecting its market dynamics and price performance.
However, analysts like James Seyffart believe that a Solana ETF could see more demand than other altcoins.
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Expert Prediction for June 2024
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Despite the current bearish trend, cryptocurrency experts remain cautiously optimistic about Solana’s outlook for the coming month. Predictions indicate that SOL could see a rebound. The asset is expected to trade at a minimum price of $176.90. The potential average cost is about $192.49 for June 2024. Meanwhile, the altcoin will trade at a high of $208.07 next month.
However, several aspects will play a role in pushing the asset to this level. This includes Ethereum ETF approval, technological developments, overall market sentiment, and regulatory climate. Solana’s ability to navigate these factors will be critical in determining how high the asset could rise in the coming month.