Solana (SOL), the high-speed blockchain network, has been struggling to stay on course. Despite climbing to a record-breaking price of $260 in November 2021, the cryptocurrency has plunged due to a massive correction that echoed the overall market downturn. However, the latest technical analysis, and expected developments suggest a potential turnaround for SOL.
Renowned crypto analyst CryptoCapo recently offered a glimmer of hope for SOL investors. Analyzing the price action on both higher time frames (HTF) and lower time frames (LTF), CryptoCapo observed patterns similar to those observed at the end of 2021. The current price rebound from the crucial support zone of $143-$129 on the HTF aligns with this pattern, hinting at a similar upward trajectory.
Further bolstering this optimism, CryptoCapo revealed holding a long position in SOL since it was at the price of $133. Furthermore, he pointed out the correction in the price that led to a touch point with the key support zone on the LTF, indicating a possible pause in the decline and a shift back to growth.
Potential Approval of Solana ETF by 2025
A significant factor contributing to the optimistic outlook for Solana is the potential for the approval of a Solana Exchange-Traded Fund (ETF). Geoffrey Kendrick, Head of Forex and Digital Assets Research at Standard Chartered Bank, believes that a Solana ETF might be approved by 2025, following the recent SEC green light for Ethereum spot ETFs.
Kendrick anticipates significant institutional investments to flow into Ethereum ETFs, potentially strengthening Bitcoin and Ethereum’s dominance and paving the way for further ETF approvals for prominent cryptocurrencies like Solana. The influx of institutional capital prompted by these approvals could significantly influence Solana’s price by enhancing overall market sentiment.
SOL is trading at $167 and up 2.52% in the last 24 hours. The green line on the chart highlights the pivot point at $160.54, a crucial level in determining the future trend direction. Notable levels of resistance are at $170.37, $176.66, and $183.26.
On the contrary, support levels can be seen at $156.75, $151.08, and $144.08. The Relative Strength Index (RSI) measures 41.51, indicating neutral momentum, and the 50-day Exponential Moving Average (EMA), which sits at $168.59, points out a lingering downward trend.
Solana’s current position near the pivot point suggests a possible rise. Nevertheless, overcoming the instant resistance at $170.37 becomes crucial for a sustained move to $176.66 and $183.26. Alternatively, a sharp break below $156.75 would open the door for a deeper decline to $151.08 and $144.08. Eternal vigilance against these critical levels will be vital for traders through the possible ups and downs in the weeks ahead.
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