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Solana (SOL), the sixth-largest cryptocurrency by market capitalization, is seeing a cooling trend in volume-related on-chain metrics, on-chain data analytics firm CryptoQuant observed.
In a recent analysis, CryptoQuant highlights its observation using bubble charts, which reflect the total trading volume across all exchanges. The size of each bubble shows how large the volume is, while the color highlights the intensity of the change.
The Solana spot volume bubble map showed green, indicating cooling as volume decreased. The Futures Volume Bubble Map depicted gray or neutral, signifying little to no change.
While at first glance, a lower trading activity might appear to be a sign of fading momentum. However, CryptoQuant indicated that this deceleration could be an early-stage opportunity, particularly if it coincides with an imminent catalyst.
One such catalyst is the potential approval of a Solana spot ETF, recently hinted at by Bloomberg analyst Eric Balchunas.
Solana ETF prediction stuns crypto market
Bloomberg ETF analyst Eric Balchunas has predicted an upcoming altcoin ETF summer, with Solana likely to be the first to gain approval for a spot ETF. According to Bloomberg Intelligence data, the approval probability for a Solana ETF is 90%.
"Get ready for a potential Alt Coin ETF Summer with Solana likely leading the way (as well as some basket products) via JSeyff note this morning which includes fresh odds for all the spot ETFs," Balchunas wrote in a recent tweet.
According to CryptoQuant, the cooling on both spot and futures markets may not be a red flag; it could simply be the quiet before the next Solana Summer storm.
At press time, SOL was up 4.74% in the last 24 hours to $166, poised for its sixth day of gains since June 5. The rise has surpassed the daily SMA 50 at $161 after Solana fell beneath it in mid-April. A decisive break above the daily SMA 200 at $175 might kickstart a fresh uptrend for the SOL price with a target of $200.
Vladislav Sopov
U.Today Editorial Team