Solana Eyes New All-Time High Of $370 After Cup And Handle Breakout

Amid bullish predictions for the market’s fifth-largest cryptocurrency, Solana (SOL), asset manager VanEck announced a significant upgrade to its Solana exchange-traded note (ETN), which now offers an automated staking feature, contributing to SOL’s ongoing price recovery. 

Matthew Sigel, head of digital asset research at VanEck, revealed that the Solana ETN, which trades under the ticker VSOL and currently has $73m in assets under management, will have rewards accrued and reinvested daily under the new staking rules, with the ultimate aim of attracting more investors and new capital. 

On the other hand, VanEck’s press release outlined how the staking process works for the Solana ETN. Importantly, the staking methods are designed to be non-custodial, meaning that the custodian of the ETN’s assets retains full control of the staked SOL, thereby eliminating lending risks typically associated with crypto investments.

In addition, investors in the Solana ETN will not need to take any action to receive staking rewards. These rewards will be accounted for in the coin entitlement of the ETN, ensuring equitable distribution regardless of when the investment was made, minus a 25% staking fee.

The staking rewards will be reflected in the daily end-of-day net asset value (NAV), with a cutoff point at 4 PM CET, allowing investors to benefit from staking without the “complexities” usually involved in managing crypto assets directly.

The firm also instructs its custodian to delegate SOL to a validator node owned and maintained by a staking provider. Importantly, control of the delegated SOL remains with the custodian, ensuring security and stability.

Once the SOL is delegated, the validator node earns various rewards, including inflationary and block rewards, accrued continuously. These rewards will be reinvested into the ETN daily, contributing to its overall performance. 

The fifth-largest cryptocurrency, has shown significant price action over the past month, gaining approximately 10% and currently trading at $164.50. This recovery follows a significant drop to around $109 on August 5, signaling a strong rebound amidst a generally bullish market sentiment.

Market expert Carl Runefelt recently highlighted Solana’s potential for further gains in a Monday social media post, stating that the token could “go parabolic starting today.” 

Runefelt pointed out a significant technical pattern on the SOL/USDT daily chart, identifying a breakout from a “Cup and Handle” formation. This bullish pattern often signifies a strong upward momentum, with Runefelt projecting a potential price target of $370.

Achieving this target would mean Solana surpassing its all-time high of $259, set in November 2021. This bullish outlook aligns with other analysts’ broader bullish predictions for the cryptocurrency market, particularly Bitcoin, which is also expected to hit new highs in the coming months.

Featured image from DALL-E, chart from TradingView.com