Solana whales make moves ahead of October spot SOL ETF approvals

Solana (SOL) is gaining traction on whale activity, as large-scale entities moved to load up on tokens. The asset may extend its bull market ahead of the October 10 ETF approval deadline. 

Solana (SOL) is gaining traction as more whale wallets are accumulating tokens. The final stretch until the spot ETF approval deadline is seen as an accumulation period, potentially extending the SOL bull market. 

On October 10, the US Securities and Exchange Commission will have to issue a statement on the launch of a new spot ETF. As Cryptopolitan reported earlier, the ETF has a 95% chance of approval. 

As a result, whales rushed in to move SOL out of Coinbase Prime. The Coinbase Prime wallet has been sending out thousands of SOL, with several large-scale transactions going to four newly created wallets, possibly belonging to one entity. 

Competition for SOL may accelerate, as the tokens are in demand for treasuries, as well as eventual ETF reserves. SOL has ended the most active period of unlocks, and while there are still potential sellers, the token may see accumulation similar to ETH. 

Galaxy Digital also put $40M SOL in its custody, after a series of withdrawals from Coinbase and Binance. 

Solana treasuries are also at the beginning of their journey, with just six entities announced. Those buyers hold 4.4M SOL, and are currently outcompeted by older whales. DeFi Dev Corp and Exodus Movement added to their treasuries in the past week. 

SOL among daily liquidation leaders

Following an active period for the Solana ecosystem, SOL broke to a higher price range. The asset is back above $220, causing market-wide short liquidations. The asset peaked at $222.10, attacking the accumulated short positions. 

As of September 10, Coinglass data showed $7.1M in SOL liquidations, as the token became one of the day’s leading gainers. 

Other estimates saw over $17M in liquidated SOL positions, as on-chain liquidations once again surpassed centralized activity. The short liquidations followed a SOL breakout above $220 for the first time in eight months. 

SOL sets expectations for a higher price range

SOL is currently trading with a “greed” sentiment based on its specific fear and greed index. Short-term expectations see SOL entering price discovery at over $250 and potentially rising to four-digit assets. 

SOL is being compared to ETH, which started its bull rally from $217 and set records close to $4,900. While this took years, SOL hopes on adoption and on-chain activity to boost the network. Mainstream acceptance through spot ETFs and treasuries may further boost the price expansion. 

SOL is currently in a range between $216 and $225 based on accumulated liquidity on long and short positions.

Open interest remains near its all-time high at $7.75B. Short traders are becoming bolder, with nearly 40% of all SOL positions attempting to short the asset. This may lead to further liquidations if SOL keeps up its rally.

Join Bybit now and claim a $50 bonus in minutes