Solana’s (SOL) price in the last 24 hours has been bearish after failing to breach the 24-hour high of $141.10. As a result, Bears dipped the SOL price to an intra-day low of $130, where support was established. At press time, the SOL price was exchanging hands at $130, a 5.33% decline in the last day. During this bear rally, SOL’s market capitalization and 24-hour trading volume declined by 5.32% and 2.53%, respectively, to $60,187,460,187 and $2,134,583,856.
Solana’s Price Trends and Market Sentiment
In the last month alone, Solana (SOL) has emerged as one of the worst performers, and has shed a quarter of its market value. The cryptocurrency market has been stagnant with no significant upward movement even with positive inflation data from the United States.
Miners have been liquidating their Bitcoin (BTC) holdings, affecting the market, including Solana.
From the analysis by CoinCodex, SOL may be expected to trade in the current range in a consolidation phase in the remainder of June. CoinCodex predicts SOL will rise to $140 in early July and climb further to $150 by mid-July.
ETF Speculation and Solana’s Future Prospects
The latest application of the Solana ETF by Canadian asset management firm 3iQ has captured the market’s attention. This document comes after the U.S. recently allowed the trading of spot Ethereum ETFs, pointing towards the acceptance of more cryptocurrency-based investment products. Standard Chartered analysts have also suggested that Solana and XRP are likely to be the next cryptocurrencies to get ETF approval in the U.S.
3iQ Corp. is pleased to announce that we have submitted a preliminary prospectus for The Solana Fund (QSOL) in Canada in relation to an initial public offering.
This continues our track record of innovation, and if receipt of applicable regulatory approvals is obtained, the… pic.twitter.com/7ghv05f8gU
— 3iQ Digital Asset Management (@3iq_corp) June 20, 2024
Nevertheless, Solana’s price remains subject to bear pressure even with such speculations. The daily new addresses have been falling since March 2024 despite the active addresses on the Solana network rising over the past year.
Andrew Kang of crypto firm Variant Fund said that Solana’s bullish sentiment may be hampered by changes in the market regarding ETF integration. He pointed out that the slow inclusion of ETFs in the wealth management systems may slow down the entry of institutional money, which may change the current trend of the market.
Bearish Patterns and Technical Analysis
Analyzing the chart, it is observed that the altcoin has created a rounding top pattern in the 1D time frame which indicates more bearishness. The Simple Moving Average (SMA) has been an effective cap on SOL’s upside, preventing the cryptocurrency from pushing through to new highs. According to the Relative Strength Index (RSI), the selling pressure continues to build up as the RSI has been falling progressively.
In case SOL stays above the $127 support level, it will gain more strength and challenge the resistance level at $155. If the bullish sentiment is even more robust, the price may reach the upper resistance level at $181.
As for the Solana ETF planned by 3iQ Corp in Canada, investors will get a chance to invest in Solana without being tied up in technical complexities. If this fund gets approval, it will be traded on Toronto Stock Exchange and then use the staked SOL to earn rewards which is in line with the 3iQ’s plan to expand the product portfolio in cryptocurrency.
Since Solana has already been managing over $1 billion in assets through various ETPs across the globe, the launch of a Solana ETF in North America could boost market depth. Experts believe that such a decision may lead to the influx of institutional and retail investors, which may stabilize and increase the price of SOL in the future.
