Solana (SOL) Shows Promise Due to Several Fundamental and On-Chain Factors, No Solana ETF Planned

Following CNF's recent report on BlackRock Sticks with Bitcoin and Ethereum, No Solana ETF Planned, despite recent declines in crypto asset prices

March 18 price analysis: Bitcoin bulls defend $60K as濤SOL ETF approved in Brazil, traders eye $175 target

Bitcoin bulls defend $60K as濤SOL ETF approved in Brazil, traders eye $175 target

While Bitcoin (BTC) price action showed little change on the day, a new development on the Solana (SOL) front could be significant for the world's second-largest digital asset.

Bitcoin price stalls at $60K, bulls prepare for next leg up

Bitcoin price is trading sideways on Saturday evening after bulls failed to push the price past the psychological level of $60,000 on Friday. At the time of writing, BTC is trading at $59,833, down 0.79% in the past day and 4.71% in the past week.

Solana (SOL) price analysis: ETF approved in Brazil, traders eye $175 target

Solana price has been trading sideways since its March 18 peak at $175. After breaking out of a bullish pennant formation on March 14, SOL price rallied 22.86% from the pattern's lower bound at $142.8 before stalling at $175. Now, traders can expect a potential return to this level of resistance before the next leg up.

Dune Analytics data shows that Solana transactions have increased over the last sixty days. This signals a rise in activity and interest from traders, especially considering that the price has been relatively flat during this period.

Several fundamental and on-chain factors are influencing Solana's outlook. Notably, Brazil's Securities and Exchange Commission has approved a Solana spot Exchange-Traded Fund (ETF). This development could pave the way for similar products in the United States and the United Kingdom.

Asset managers VanEck and Standard Chartered have previously highlighted the possibility of a Solana ETF in the US by 2025. Meanwhile, the supply of PayPal's (PYUSD) stablecoin on the Solana network has also risen to $377.25 million, surpassing its supply on the Ethereum (ETH) network.

Key market drivers

Brazil's approval of a Solana spot ETF could pave the way for similar products in the US and UK. Asset managers VanEck and Standard Chartered have suggested the potential for such an ETF in the US by 2025.

The supply of PayPal's PYUSD stablecoin on Solana has surpassed $377 million, exceeding its supply on Ethereum (ETH).

Rising transaction volumes on Solana indicate growing interest from traders.

Resistance and Support Levels for the Solana Market

Solana price has been trading sideways since March 18 after peaking at $175. With a potential rally towards this level in the cards, what resistance and support levels should traders watch out for?

Solana price has been consolidating within a range since March 18, following a bullish breakout from a descending triangle on March 14. After rallying from the lower bound of the triangle at $142.8 to peak at $175, SOL price encountered strong resistance at this level.

As the price stalls at $175, traders can anticipate a potential rally towards the next resistance zone at $150, which coincides with the 50% Fibonacci retracement level and a previous area of support before breaking out of the descending triangle.

Before reaching this target, SOL may encounter resistance at the psychological level of $150. The Relative Strength Index (RSI) is at 44.13, indicating indecision among traders.

Solana price is supported by the lower Bollinger Band at $142.8 and the 38.2% Fibonacci retracement level at $138.8. If the price falls below these levels, it could encounter further support at the 23.6% Fibonacci retracement level at $129.8.

Solana price chart by TradingView

The bullish pennant breakout on March 14 signaled a 22.86% gain from the lower bound at $142.8 to the upper Bollinger Band at $175. Now, traders can expect a potential return to this level of resistance before the next leg up.

Solana price stalls at $145 after ETF approval in Brazil, what's next?

Solana price has shown minimal change over the past twenty-four hours, decreasing by 0.79% to trade at $145.07 at the time of writing.

After rallying from the lower Bollinger Band at $138.8 on March 14, SOL price encountered resistance at the upper Bollinger Band at $175 on March 18, where it has stalled since then.

Solana price stalls at $145 as traders

The above is the detailed content of Solana (SOL) Shows Promise Due to Several Fundamental and On-Chain Factors, No Solana ETF Planned. For more information, please follow other related articles on the PHP Chinese website!