Solana Price Struggles As Spot ETF Progress Stalls: What To Expect?

• Solana crypto faces bearish sentiment as SEC rejected ETF filings.
• RSI readings signals cooling bullish trend, suggest reduced bullish pressure.

Solana (SOL), the fifth largest market cap cryptocurrency, faced range-bound moves. It has sustained near the 20-day EMA support zone and indicates signs of cooling off.

The key reason for the price consolidation and declining buying pressure is the roadblock of the spot ETF filing. Reports suggest that Solana ETFs might be launched later this year.

Solana was the next probable choice after the approval of the Bitcoin and Ethereum ETFs. Several firms, including VanEck, Bitwise, Grayscale Investments, 21 Shares, and Canary Capital, were the first to seek approval for Solana ETFs.

A recent report disclosed that the U.S SEC informed at least the applications that intend to be disapproved. The report mentioned that the planned rejection is due to the need for more clarity in identifying Solana as an asset, such as whether it is a security.

However, industry experts believe SOL ETF approvals will gain once Paul Atkins assumes SEC leadership in January. In the past few sessions, the Solana price experienced bearish sentiment and stagnated in a tight range between $230-$250.

At press time, Solana price traded at $236, noting an intraday decline of over 2.11%. Its market cap has fallen to $112.15 Billion, and the total supply stood at 589.70 Million.

Can Solana’s TVL Surge Drive a Price Rebound?

The Solana (SOL) DeFi ecosystem recently witnessed a considerable surge. Solana crypto’s Total Value Locked (TVL) showed a staggering increase of 12% over the past seven days. That pushed the metric to $9.438 Billion.

Positive TVL growth coupled with a surge in volume are usually signs of growing confidence among investors. This reflected the recent shift to a longer-term focus, and the most notable impact was SOL’s bullish price action.

Solana Price Prediction: Can Bulls Defend Key Support Back?

The Solana price was close to 20-day EMA support in the daily timeframe, eyeing for a bounce. Over the last 24 hours, the daily active addresses (DAA) noted a surge of over 12%. This indicated increased investor interest, which could, in turn, fuel bullish pressure.

The Relative Strength Index (RSI) has a reading of 55, indicating neutrality, neither overbought nor oversold.

Considering the EMA setup, the SOL price sustained gains past the 20-day EMA and stayed above it. It signaled that the uptrend was still intact.

A daily close above the $260 mark will further fuel the buying pressure. Moreover, an upsurge toward $280 can be anticipated in the coming days.

Retail Traders Turn Bearish on SOL

The bearish market sentiment is reflected by long liquidation totaling $659,102. That is because the traders are forced to close positions amid downward momentum. The market’s uncertainty and SOL ETF rejection puts retail traders in a dilemma.

Also, the Open Interest (OI) has declined over 2.10% to $5.80 Billion. This signified a long unwinding move over the past 24 hours. The immediate support zones for the Solana price were $225 and $218. At the same time, the resistance levels were $250 and $268.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.