SOL, the native cryptocurrency of the Solana network, witnessed a strong intraday surge of 5.85% to reach its current trading price of $145. The rally comes in response to CME Group’s announcement of launching Solana futures in the coming months, signaling growing institutional interest. Will this renewed bullish momentum defy prevailing market correction for a fresh recovery trend?
Key Highlights:
- The launch of Solana futures on CME Group positions SOL alongside Bitcoin and Ethereum in the regulated derivatives market.
- A potential death crossover between 50- and 200-day EMA could hinder Solana price recovery.
- Since March 2024, the $120 horizontal level acted as a key accumulation zone for SOL buyers.
CME Group Announces Solana Futures
CME Group, the world’s leading derivatives marketplace, announced plans to introduce Solana (SOL) futures 2025 On March 17, pending regulatory approval. This move will provide market participants with additional tools to hedge and gain exposure to SOL’s price movements.
Traders will have access to two contract types:
- Micro contracts: 25 SOL
- Standard contracts: 500 SOL
CME Group’s decision to introduce SOL futures is expected to enhance liquidity, improve price discovery, and attract institutional investors looking for exposure to Solana without direct asset ownership.
Despite the bullish development, the Solana stake accounts transferred 2.276 Million SOL (worth approximately $324.62 Million) to Coinbase Prime just minutes before Solid Intel reporting.
The massive transfer raised speculation about potential whale liquidation or institutional reshuffling of assets. This volume sold to the open market could notably impact price volatility and surge bearish sentient on SOL.
Here’s Why Solana Price May Consolidate Above $120
In the last five weeks, the Solana price has witnessed a high momentum, selling from $295 top to $144 low, registering a loss of 57%. The correction trend plunged below the 200-day EMA slope, and the 50% retracement level indicates a weak buyer’s conviction and risk for further downfall.
However, with the aforementioned announcement of CME Group Solana futures, the asset witnessed a fresh demand pressure above the yearly support of $120. This horizontal level stands as a high accumulation zone for buyers, which bolstered major price reversals since March 2024.
However, the current market uncertainty is unlikely to support a full-fledged recovery for SOL, and therefore, the asset could prolong consolidation above $120.
If the whale selling persists, a breakdown below $120 could push Solana price below the $80 floor.
Also Read: Bitcoin at $79K: ‘Buy the Dip’ Sentiment Reaches 7-Month High
