Solana price is on the borderline of reinforcing its leg up and sliding below a crucial support level in search of liquidity. On the brighter side, the approval of a second SOL ETF in Brazil may uphold investor interest and trigger a larger breakout.

Solana Price Market Movers: SOL ETF Approval, Positive Market Sentiment, Futures Liquidation

Solana price is at a critical juncture. Bulls are poised to aggressively drive the price up by 42% to $200. However, if the support level of $140 is breached, it could trigger another sell-off, potentially leading to a drop to $130.
The second Solana spot exchange-traded fund (ETF) approval by the Brazilian Securities and Exchange Commission (CVM) may set the stage for a SOL price rally. According to the agency’s central database Brazil-based Hashdex is the operator of the investment product. Hashdex, which boasts more than $962 million in assets under management, partnered with BTG Pactual, a local bank, to develop and launch the spot ETF. The first SOL ETF was approved in early August.
The recent spike in Solana’s weighted sentiment to 1.935, as per Santiment data, indicates a significant increase in positive sentiment surrounding the competitive smart contracts token. Notably, this surge is a bullish signal, suggesting that traders are becoming more optimistic about SOL’s prospects.

Solana weighted sentiment | Santiment

Based on SOL price forecast, the massive spike in long position liquidations, reaching $3.57 million in 24 hours and $737.66k on August 22, indicates a significant build-up of bearish pressure on the market. It suggests that many traders betting on Solana price increase were forced to liquidate their positions, increasing the probability of another downswing to $130 support.

Solana futures data

SOL Price Analysis: Bulls Defend Key Support

Solana delicately holds $140 support hinting at the lack of enough liquidity to resume the uptrend. An attempt to break above $150 was rejected yesterday under the 20-day and the 50-day Exponential Moving Averages (EMAs) resistance.

The anticipated rebound from $140 will encourage traders to place buy orders betting on a major leg up to $160. Such a move may ignite broader market FOMO, elevating Solana toward the $180 and even the $200 level.

A potential falling wedge breakout formed when Solana price corrected, touching two lower highs and three lower lows, could accelerate the rally. Traders measure the breakout target with the distance between the first swing high and the first swing low, extrapolating above the trend line resistance.

SOL price chart | Tradingview

An extended retest of $140 support could allow selling pressure to build up as sellers gain confidence. Moreover, several attempts to move higher have failed in the last two weeks, signaling the lack of enough liquidity. Hence, another swing low to around the $130 support area is possible before Solana reverses the trend.

The post Solana Price Eyes 42% Move As Market Digests Second SOL ETF Approval In Brazil appeared first on CoinGape.

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Filed under: News - @ August 21, 2024 3:24 pm