12 August 2024
Although the market dipped today, Solana has found its way to spark investor interest despite falling a few points in the past 24 hours. However, the token is still up nearly 22% in the past month, going against the market’s general bearishness after last week’s slip and slide.
Solana’s significant traction around the world has garnered some attention in the institutional space, leading to a development that might help SOL weather the bearish storm ahead. But with the coming announcements of several macro indicators, there might be trouble in the coming weeks.
Brazil Approves Solana ETF, Coming Ahead Of The USA
The Comissão de Valores Mobiliários (CVM), the Brazilian equivalent of the US Securities and Exchange Commission, approved QR Asset’s Solana exchange-traded fund (ETF) proposal on Wednesday becoming the first ever Solana ETF in Latin America. This development surpasses the United States as several Solana ETFs are still up for review by the SEC.
According to local sources, the ETF is still subject to approval by B3, the company responsible for the country’s stock exchange. Nonetheless, this is a huge win for Brazilian crypto-enthusiasts as it solidifies the country’s position in the international crypto scene.
“This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets,” Theodoro Fleury, Manager and Chief Investment Officer at QR Asset, said in an interview.
SOL Consolidation Phase Starts, Price To Stabilize On This Level
Regulatory hurdles are the thing that block Solana ETFs from hitting the market. Although the SEC already pulled Solana’s name from its legal action against Binance, Solana ETFs in the US are still a long way ahead. But the market reacted spectacularly well from the Brazilian Solana ETF announcement.
Although short term pain is relatively stingy, SOL’s position is quite healthy as the $131-$147 price range remains to be the bulls’ chosen platform for future upward movement.
Meanwhile, World of Charts, a well-known cryptocurrency analyst, has identified the presence of a bullish pennant pattern. This pattern typically occurs after a significant upward price movement and is characterized by converging trendlines that resemble a symmetrical triangle. This pattern indicates a temporary halt in the market before continuing the current upward trend.
ETF: Boon Or Bane?
The ETF announcement has definitely hurt the bears, which further reduced the possibility of further downturn. Moving forward, investors and traders should watch the broader market developments that may or may not affect the token’s price movement. In this case, watching how institutional entities grow in interest on Solana– and crypto as a whole– is a great place to start.
SOL’s potential is in the long term with developments like this that may take place weeks, or even months, after the initial announcement. As of now, SOL is weathering the bearish storm well as the consolidation phase opens the road toward $171 or even $186.
However, expect this consolidation phase to be short as the market continues to experience moderate volatility in the short term.
Featured image from Marca, chart from TradingView