Solana (SOL) Eyes Recovery: Analyst Insights & ETF Potential Drive Optimism

Solana (SOL), the high-speed blockchain network, has faced challenges in maintaining its momentum. After reaching a record price of $260 in November 2021, the cryptocurrency experienced a significant drop amid a broader market correction.

Noted crypto analyst CryptoCapo recently provided a hopeful outlook for SOL investors. Examining price movements on both higher time frames (HTF) and lower time frames (LTF), CryptoCapo identified patterns reminiscent of those seen at the end of 2021. The current rebound from the key support zone of $143-$129 on the HTF suggests a potential upward trend.

Adding to the optimism, CryptoCapo disclosed a long position in SOL since it was priced at $133. He also highlighted the price correction that brought SOL to the key support zone on the LTF, suggesting a possible halt in the decline and a shift towards growth.

One big reason folks are hopeful about Solana is the chance of a Solana Exchange-Traded Fund (ETF) getting the thumbs up. Geoffrey Kendrick, who heads up Forex and Digital Assets Research at Standard Chartered Bank, thinks a Solana ETF could get the green light by 2025, especially after the SEC gave Ethereum spot ETFs the nod not long ago.

Solana ETF Approval Possible By 2025

Kendrick expects big money from big institutions to pour into Ethereum ETFs. This could make Bitcoin and Ethereum even stronger and open doors for more ETF approvals for big cryptocurrencies like Solana. With these approvals bringing in loads of institutional cash, Solana’s price might see a big change because it’ll make everyone feel better about the market.

SOL is currently trading at $167, up 2.52% in the last 24 hours. The green line on the chart marks the pivot point at $160.54, a key level for determining the future trend direction. Key resistance levels are at $170.37, $176.66, and $183.26.

Conversely, support levels are 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) at $168.59 suggests a persisting downward trend.

Solana is now near a key point, hinting at a possible rise. However, it must first break the resistance at $170.37 to reach $176.66 and $183.26. On the other hand, if it drops sharply below $156.75, it could fall further to $151.08 and $144.08. Traders need to watch these levels closely as they navigate the ups and downs in the coming weeks.

Related Reading | Ethereum Accumulation Addresses Spike, Bulls Target $4,000

Furthermore, the author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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