Why is Solana (SOL) price up today?

Solana (SOL) price is outperforming the crypto market on April 11, up 7.45% over the last 24 hours to trade at $121.

Let’s take a closer look at the factors behind Solana’s rally today.

Renewed SOL ETF approval optimism

Solana price appears to be benefitting from a broader market bounce across the entire cryptocurrency market and renewed optimism surrounding a potential Solana ETF approval in the US following Paul Atkins’ appointment as SEC chair. Atkins, known for his crypto-friendly stance, has sparked speculation that altcoin ETFs, including Solana, could face a smoother path to approval. 

The betting odds for a SOL ETF approval in 2025 now stand at 76% on Polymarket. Over the past three months, the probability of approval has swung 11% in favor of the bulls, which was around 65% on Jan. 4.

Several major asset managers have submitted applications for a Solana ETF, including VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital.

Market participants believe such an offering could attract new capital and enhance liquidity in SOL trading. 

Margin short liquidations push SOL price higher

Rising liquidations in Solana’s derivatives market also played a role in today’s rally, according to data from CoinGlass. The crypto futures market witnessed the liquidation of over $226 million worth of leverage positions in the last 24 hours, with $152.4 million being short liquidations.

Over $9.3 million in short SOL positions were liquidated against $2.1 million in long liquidations over the same period. 

Related: Fartcoin rallies 104% in a week — Will Solana (SOL) price catch up?

Solana’s RSI shows a bullish divergence

On SOL’s daily chart, there is a bullish divergence with the daily RSI which preceded today’s price increase.

The bullish divergence could be a hint that the bulls are gaining control, and if the trend holds, SOL price could rally toward the 50-day SMA above $130 in the short term.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.