Solana (SOL) lost its 5% gains post-launch of its staking ETF, exposing technical weaknesses. Investor concerns rise amid continued bearish trend. Delve into this analysis to grasp the implications.
After a 5% surge following the launch of its first exchange-traded fund (ETF), the price of SOL (Solana) quickly erased its gains, exposing persistent technical weaknesses in both short and long-term timeframes. This volatility raises questions about the robustness of the Solana blockchain and its appeal to sophisticated investors.
In the short term, SOL has failed to maintain positions above its 50 and 200-day exponential moving averages for over a month. Despite attempting to break above its trendline, the cryptocurrency has been unable to transform these movements into a sustainable bullish trend.
However, SOL has responded well this morning and is currently trading above its 100 and 20-day moving averages at $149. The token is up 1.9% since this morning after bouncing off its POC on the 12-hour chart.
In this context, SOL could potentially target the next strong liquidity zone at $174 in the coming days or weeks if the trendline at $151.74 is breached again.
The 50-day MA at $157 has acted as strong resistance over recent weeks. It will therefore be crucial for SOL to break above this level and maintain it as support to confirm the probability of a long-term bullish movement towards $200 and beyond.
Currently consolidating around $149, SOL sits in a price range where a significant concentration of holders is observed, highlighting the importance of defending the support level at $144. Any pullback below this threshold could signal potential weakness, increasing the risk of a deeper decline toward lower support zones at $124 and $95-100.
Conversely, resistance is emerging at $157, where 5.55% of the supply is concentrated, representing a challenge for bullish momentum. For now, the dense cluster from $144.5 to $147.7 underscores a solid foundation that investors should support to maintain SOL’s price.
Although the ETF launch initially generated enthusiasm, SOL’s persistent technical weakness is a warning sign that savvy investors shouldn’t ignore.
However, SOL could well reverse the trend today and in the coming days. A breakout above $151 and $157 could propel the token toward new highs in the coming months. Here’s a simple guide to obtaining the token on BitMart :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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