SOL Price Moves After Brazil’s Second Spot ETF Approval
Date: 2024-08-22 Author: Henry Casey Categories: CRYPTO PAYMENTS
Solana has fallen 2.79% in the past 24 hours, in line with the overall decline in the cryptocurrency market.
The decline comes amid a major development in Brazil, where the country’s financial regulator approved a second Solana spot ETF. However, this has not helped Solana overcome its recent struggles. The altcoin is still down 2.23% since last Wednesday, underperforming most other major altcoins and failing to gain the momentum needed to break out of its current range.
Despite the ETF approval, activity around Solana remains low, with trading volume down 28.55% to $1.657 million in the past 24 hours.
Why is Solana Still Falling After Second ETF Approval?
Brazil’s Securities and Exchange Commission (CVM) has approved a second Solana ETF, the Hashdex Nasdaq Solana Index Fund, which is managed by Hashdex in partnership with Brazil’s largest investment bank, BTG Pactual.
The market’s weak reaction to the news may be due to the fact that the ETF is still in its pre-launch phase and is not yet available for public trading by investors. As a result, Solana’s price has not yet benefited from the potential inflows that the ETF could bring.
This approval comes shortly after the CVM approved the first Solana ETF, launched by QR Asset Management on August 8. However, this ETF is also in its pre-launch phase and awaits final approval from the B3 exchange, with launch expected in the next two months.
The addition of another Solana ETF expands the options for institutional capital and provides access to the Solana ecosystem without the need to directly purchase and hold SOL tokens.
Solana Price Analysis – Will ETFs Spark Value Growth?
Although Solana price remains stable in a narrow range, there is hope that with the launch of the ETF and inflows, Solana will be able to break out of its recent stagnation.
Since August 12, Solana price has been trading in a range of $146.75 to $137.75, but has not found enough strength to rally.
The Relative Strength Index (RSI) remains below the neutral level of 40, indicating weak buying interest. Weak buying pressure reflects cautious sentiment among traders, which prevents Solana from rising in the near future without significant demand.
In addition, the Chaikin Money Flow (CMF) indicator also remains in the negative zone, indicating continued selling pressure.
However, the Parabolic Stop and Reverse (SAR) indicator, which shows the trend, continues to be below Solana price since August 8, indicating the presence of an uptrend and potential support for further gains.
The continuation of the stable trend of the 200-day moving average (EMA) also signals a strong basis for a possible recovery. This solid foundation, coupled with significant ETF inflows, could be the driving force behind a significant increase in Solana’s price.
