Solana (SOL) has faced a challenging month, with its price dropping significantly since May 21st, 2024. This decline coincided with a surge in investor interest in Ethereum (ETH) following the approval of a spot ETF by the US SEC. However, recent developments suggest a potential turning point for Solana.
On-chain data analysis reveals that despite the short-term market volatility, Solana’s core investors have been strategically accumulating the token. This suggests a belief in the project’s long-term prospects and a potential bullish reversal. This positioning strengthens the possibility of a price rebound as market sentiment shifts.
Further bolstering optimism is the recent news of a successful application by 3iQ, an investment firm, to launch Solana ETFs in Canada. This development was announced on June 21st, 2024, and has coincided with a noticeable increase in buying pressure for SOL. The price has held firm above the crucial $122 support level, a significant indicator of investor confidence.
From a technical standpoint, Solana’s price sits precariously above the lower Bollinger Band, an indicator that measures volatility. While this suggests a potential for further decline, it’s important to note that the Relative Strength Index (RSI) currently sits at 31.59, indicating oversold territory. This technical reading often entices investors seeking undervalued assets, potentially sparking a buying spree and a price increase.
Solana’s price depends on two factors: Canadian ETF approval and maintaining support above $122. Positive ETF news could attract institutional investors, followed by retail and whale buying, driving the price up. Failure to secure ETF approval or a price drop below $122 could continue the downtrend. However, holding above $122 could establish a foundation for a potential rally.
If a bullish trend takes hold, the initial hurdle for SOL would be the 20-day Simple Moving Average (SMA) currently at $147.61. A decisive break above this resistance level could pave the way for growth towards the upper Bollinger Band at $176.64. Successfully surpassing this level would be a significant accomplishment and could mark the beginning of a prolonged period of price appreciation for Solana.
Solana’s price trajectory hinges on the Canadian ETF decision and $122 support level in the coming weeks. Investors should monitor developments and price action closely. A positive outcome and hold above $122 could trigger a bullish reversal, while negative news or a breakdown could lead to further decline.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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