Although the market fell today, Solana has found a way to spark investor interest despite falling a few points in the past 24 hours. However, the token remains above Almost 22% in the last month, against market expectations. general Pessimism after last week’s slide.
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Solana’s significant traction across the globe has generated some attention in the institutional arena, leading to a rally that could help SOL weather the bearish storm ahead. But with several macroeconomic indicators due for announcements, there could be trouble in the coming weeks.
Brazil approves Solana ETF, ahead of US
He Securities and Exchange Commission (CVM), the Brazilian equivalent of the United States Securities and Exchange Commission, approved On Wednesday, QR Asset’s proposal to launch a Solana exchange-traded fund (ETF) became the first Solana ETF in Latin America. This move surpasses the United States, as several Solana ETFs are still pending review by the SEC.
According to llocal sourcesThe ETF is still subject to approval from B3, the company responsible for the country’s stock exchange. Nevertheless, this is a big win for Brazilian crypto enthusiasts as it cements the country’s position on 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 cryptoassets,” said Theodoro Fleury, manager and chief investment officer of QR Asset, in an interview.
SOL consolidation phase begins and price will stabilize at this level
Regulatory hurdles are what’s preventing Solana ETFs from coming to market. Although the SEC already The Solana ETF in the US still has a long way to go, but the market reacted spectacularly well to the announcement of the Solana ETF in Brazil.
Although the short-term pain is relatively mild, SOL’s position is quite healthy as the $131-$147 price range remains the bulls’ platform of choice for the future up-move.
Meanwhile, World of Charts, a well-known cryptocurrency analyst, has identified the presence of a bullish pennant pattern. This pattern usually appears after a major upward price movement and is characterized by converging trend lines that resemble a symmetrical triangle. This pattern indicates a temporary stop in the market before continuing the current uptrend.
ETF: blessing or curse?
The ETF announcement has definitely hurt the bears, further reducing the possibility of a further decline. Going forward, investors and traders should keep an eye on broader market developments that may or may not impact the token’s price movement. In this case, watching institutional entities increase their interest in Solana (and cryptocurrencies in general) is a good place to start.
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SOL’s potential is long-term, with developments like this one potentially taking place weeks or even months after the initial announcement. So far, SOL is weathering the bearish storm well, as the consolidation phase paves the way towards $171 or even $186.
However, this consolidation phase is expected to be short-lived as the market continues to experience moderate volatility in the near term.
Featured image by Marca, chart by TradingView
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