Market
Solana ETF Faces Delay Amid SEC’s Security Label Concerns
Solana (SOL) remains under the “security” label imposed by the U.S. SEC, which likely led to the removal of VanEck and 21Shares’ 19b-4 forms from the Chicago Board Options Exchange (Cboe) website.
In June 2023, the regulator classified 12 tokens, including SOL, as securities. Some of the projects resisted the SEC’s claims.
SEC Questions SOL Token’s Security Status
A source close to the matter told a news site that the US SEC approached prospective issuers and expressed concerns over SOL’s potential security classification. This led to the SEC and the Cboe not filing the 19b-4s forms to the Federal Register.
The submission of the 19b-4 filings would have initiated the approval process. Notably, these forms are critical, outlining the requirements and disclosures necessary for listing an ETF for trading on a stock exchange. The 19b-4s qualifies the S-1 registration statements to go effective.
Indeed, BeInCrypto reported that the 19b-4 forms for Solana ETF filings disappeared from the Cboe website. As it stands, VanEck’s S-1 registration statement for its Solana ETF still appears on the SEC’s filing system, EDGAR. However, 21Shares’ S-1 registration statement filing is no longer present in search results, but the direct link remains functional.
Read more: Solana ETF Explained: What It Is and How It Works
This development shows the SEC’s ongoing caution, given its previous stance that Solana might be a security. Peer cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have approved ETFs (exchange-traded funds). However, the likelihood of Solana ETFs being approved under the current administration remains low. Some experts say it might not happen until 2025, if at all.
“Solana ETF not happening anytime soon under the current administration,” President of the ETF Store, Nate Geraci, said.
Noteworthy, the US SEC is yet to publish its notice formally.
US to Lag Behind in Solana ETF as SEC Needs More Convincing
The recent events align with statements from Hester Pierce, alias ‘crypto mom,’ one of the SEC Commissioners. Pierce said the regulator would need more convincing before approving a Solana ETF. She cited what the SEC thinks is a security and what is not.
The stance traces back to June 2023, when the US SEC branded 12 tokens as securities in the exchanges’ lawsuits. These were Solana’s SOL, Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), Coti (COTI), and Binance’s BUSD and BNB tokens.
“I mean, the SEC literally alleged SOL to be a security back in June 2023 when it sued Coinbase so this should not be a surprise,” attorney Fred Rispoli commented.
Per the regulator, these tokens have been “offered and sold as investment contracts and, therefore, as securities” since inception. The assertion that crypto assets are offered as an “investment contract” appears across the filing for each crypto asset mentioned, making it the de facto argument for what qualifies as securities.
Read more: What Is Solana (SOL)?
The regulator’s filing gave 53 pages worth of context, dissecting each of the 12 crypto assets mentioned. The latest stance against Solana marks another one of the SEC’s moves, which have been termed regulation by enforcement. Amidst this setback, crypto enthusiasts already see the US lagging in Solana ETF issuance.
“Canada will win again with a SOL ETF,” said David Tawil, co-founder and president of ProChain Capital.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead?
Bitcoin’s (BTC) price climbed to $70,000 today ahead of the US presidential election, indicating the connection between major political events and cryptocurrency movements. Historically, political uncertainty and significant elections have influenced crypto market sentiment and volatility.
As the election begins, on-chain analysis provides insights into potential future price movements. Analysts are also weighing in on the implications of the election outcome for Bitcoin, with opinions varying on whether the cryptocurrency could continue its upward trend or face downward pressure. Here are all the details.
Demand Spike for Bitcoin Echoes 2016 and 2020 Trends
According to Glassnode, the Bitcoin price increase comes amid a drop in the sell-side risk ratio. This metric shows whether investors are confident about a bullish performance or if conviction is low.
High values in this metric indicate periods when significant amounts of value are being realized, often correlating with increased market volatility. Such periods are commonly seen during the late stages of bull markets.
Conversely, low values suggest periods with minimal value realization and reduced market volatility. This can also signal macro market bottoms, accumulation phases, and environments with lower sell-side pressure and risk, potentially indicating the onset of future bullish trends.
Read More: 7 Best Crypto Exchanges in the USA for Bitcoin (BTC) Trading
Therefore, the rise in Bitcoin’s price indicates that selling pressure is low, and the US elections could be bullish for the cryptocurrency.
Regarding this development, Juan Pellicer, Senior Researcher at IntoTheBlock, opined that a Donald Trump win would be good for BTC and the crypto market at large.
“The market appears primed for further upward movement, with the US election serving as a potential catalyst. Sentiment suggests that Trump’s more favorable stance on cryptocurrencies could provide the momentum needed for a decisive breakthrough to a new all-time high.” Pellicer told BeInCrypto
Meanwhile, CryptoQuant’s weekly report says that BTC is at a favorable price level ahead of the elections. It noted that the cryptocurrency is currently not overvalued. Hence, if demand increases, Bitcoin’s price might rally post-election.
For instance, BTC prices rallied by 22% between election day and December 2012. In 2016, it climbed by 37%, while the cryptocurrency saw a 98% increase in 2020.
Therefore, if past performance influences future trends, the BTC might reach a new all-time high before the end of the year.
Data from the on-chain data provider also showed that demand for Bitcoin has increased. This is similar to the trends of 2016 and 2020. Hence, if sustained, the Bitcoin price might climb well above $70,000 soon.
BTC Price Prediction: $73,000 Possible
On the 1-hour chart, Bitcoin has attempted to break out on four different occasions. However, each time that happened since October 31, the coin faced rejection. However, today, the trend has changed as bulls pushed the cryptocurrency above $68,336.
This breakout has ensured that Bitcoin’s price has risen to $70,288. Furthermore, the Bull Bear Power (BBP) shows that bulls are in control. If sustained, Bitcoin’s price might rally much higher in the coming days.
Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030
If bullish momentum persists, Bitcoin could potentially climb to $73,623 ahead of the announcement of the US election results. However, should BTC face rejection at resistance levels, this forecast might be invalidated, with the cryptocurrency possibly declining to $67,405.
The post US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead? appeared first on BeInCrypto.
Market
Why Ethereum’s Weak Momentum May Block $2,600 Breakout
Ethereum (ETH) price is showing signs of weakening strength as polls open across most of the US.
Despite a 24% surge in trading volume over the past 24 hours and a modest 1% price uptick, technical indicators suggest a potential downturn. Here’s a closer look at the factors behind this analysis.
Ethereum to Remain “Under”
Readings from the altcoin’s Super Trend indicator reflect Ethereum’s weak price action. At press time, its red line rests above Ethereum’s price, confirming the potential downward trend.
This indicator helps traders identify the prevailing market trend and potential entry or exit points. It detects changes in price direction and determines support and resistance levels, often signaling when to buy or sell an asset. When the Super Trend line moves above the price and turns red, it signals a bearish trend, often considered a sell signal.
On the ETH/USD one-day chart, Ethereum’s Super Trend line is above the coin’s price at $2740, forming a resistance level that may be difficult to breach if new demand fails to enter the market. When the Super Trend line moves above the price, it acts as a resistance level. This is because the line indicates a potential “ceiling” where the price might face resistance if it attempts to rise.
Read more: Ethereum ETF Explained: What It Is and How It Works
Moreover, the setup of ETH’s moving average convergence/divergence (MACD) indicator — which tracks its trend direction, shifts, and potential price reversal points — supports this bearish outlook. As of this writing, ETH’s MACD line (blue) rests below its signal line (orange) and zero line.
This bearish signal suggests that ETH’s short-term momentum is weakening. Traders often interpret this as a signal to exit long positions and take short ones.
ETH Price Prediction: August 5 Low Is Possible
If buying pressure weakens, Ethereum’s price could fall toward its August 5 low of $2,112, marking a 13% drop from its current value. Conversely, a surge in demand could propel the coin to test resistance at $2,508.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
A successful breakthrough at this level would set the next target at the Super Trend line resistance of $2,740. Clearing this mark with strong momentum could position Ethereum for a climb toward $2,869 — a level not seen since August.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
AAVE Whales Flood Exchanges,
AAVE, the governance token of the prominent lending protocol Aave, is experiencing downward pressure as large holders, or whales, initiated significant sell-offs early Tuesday.
This analysis explores potential price targets as AAVE’s value reacts to the intensified selling pressure from whales.
Aave Whales Sell Holdings
In a Tuesday post on X, on-chain sleuth Lookonchain noted that AAVE whales are actively selling off their holdings, with significant withdrawals noted in recent transactions.
One whale, identified as address 0x7634, withdrew 25,790 AAVE (around $3.39 million) from the Aave protocol and transferred it to the MEXC exchange. Just three hours earlier, another whale, address 0x790c, had removed 7,822 AAVE (approximately $1.04 million) from Aave and sent it to Binance. Additionally, crypto trading firm Cumberland deposited 10,000 AAVE to OKX.
The action of these AAVE whales has resulted in a sharp rise in its exchange flow balance. Santiment’s data shows that at press time, this balance is 53,000 AAVE, representing its single-day highest flow since September 10.
Read more: How To Use Aave?
The Exchange Flow Balance measures the net flow of a cryptocurrency into or out of exchanges, calculated by subtracting the total amount withdrawn from the total amount deposited. An uptick in this metric indicates that large quantities of the asset are being sent to exchanges. Such substantial inflows often signal potential price drops, as the added sell pressure can overwhelm the market’s capacity to absorb it.
AAVE’s negative price daily active address (DAA) divergence confirms this rise in selling pressure in the market. At press time, the metric’s value stands at -39.24%.
This metric compares an asset’s price movements with the changes in its number of daily active addresses. Investors use it to track whether the price movements are supported by corresponding network activity. A negative value suggests weakening demand and potential selling pressure.
AAVE Price Prediction: Where Risks and Opportunities Lie
AAVE is currently trading at $130.29, hovering slightly above its key support level at $128.45. The diminishing buying momentum signals a potential risk of a drop below this threshold. Should AAVE’s price break through this support, it could fall further to $116.10.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
Conversely, if market sentiment turns bullish, AAVE might see a reversal, with its price likely rallying toward the next resistance level of $140.79.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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