Solana could drop to $80 as institutional ETFs and meme coin trading slow down.
Crypto expert Andrew Kang, co-founder of a crypto-focused venture capital firm, suggested in a recent post that changes in ETF integration could dampen Solana’s (SOL) bullish momentum.
Kang believes that while Solana (SOL) has shown strong performance recently, it could be impacted by fluctuating demand from meme traders. If meme trading decreases, SOL’s price could plummet to the $80 level.
Despite this potential drop, Kang noted that the underlying technology and long-term potential of Solana could support its price in the future.
integration of ETFs
Kang argued that the postponed rollout of ETFs on wealth management platforms could have a substantial impact on the cryptocurrency market. The anticipated surge in ETF investments is now forecasted for the fourth quarter or later in the year.
Without significant ETF inflows, the cryptocurrency market’s momentum could shift from upward to downward. Nonetheless, Kang remains optimistic that Bitcoin (BTC) will retain its resilience, predicting prices are unlikely to dip below the $50,000 threshold.
Expectations for Ethereum
Ethereum (ETH) could maintain its value leading up to ETF approval, but according to Kang, its upside potential for the year is expected to be limited to the low $4,000s. If ETF inflows are insufficient or if there is significant selling pressure on ETH, it could drop to the low to mid $2,000 range.
The Ethereum community is known for its strong advocacy and understanding, which might create high expectations for ETF impacts among investors new to crypto. However, insights from traditional finance experts suggest relatively subdued interest in Ethereum ETFs.