Solana (SOL) has been making significant gains in the crypto market on April 11, with its price surging by 7.45% over the last 24 hours to reach $121. The bullish trend in SOL's value is outperforming the broader cryptocurrency market. The renewed optimism surrounding a potential Solana Exchange-Traded Fund (ETF) approval in the US is believed to be one of the key factors driving Solana's rally.
The appointment of Paul Atkins as the new chair of the US Securities and Exchange Commission (SEC) has sparked speculation among investors that altcoin ETFs, including Solana, could have a smoother path to approval. Atkins is known for his crypto-friendly stance, leading to increased expectations for favorable regulatory decisions in the crypto space. The probability of a SOL ETF approval in 2025 currently stands at 76% on Polymarket, marking an 11% increase in favor of approval over the past three months. Major asset managers such as VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital have already submitted applications for a Solana ETF, indicating growing interest in the digital asset.
Moreover, Solana's rally today is also attributed to rising liquidations in the cryptocurrency derivatives market. Data from CoinGlass shows that over $226 million worth of leverage positions were liquidated in the last 24 hours, with a significant portion of $152.4 million coming from short liquidations. This surge in liquidations has contributed to pushing SOL's price higher, with over $9.3 million in short SOL positions being liquidated compared to $2.1 million in long liquidations during the same period.
Additionally, technical analysis of SOL's daily chart reveals a bullish divergence with the Relative Strength Index (RSI), indicating potential upward momentum in SOL's price. The bullish divergence suggests that the bulls are gaining control, and if the trend continues, SOL's price could target the 50-day Simple Moving Average (S
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