Despite being stuck at the $140 level, Solana could be set to enjoy a 40% surge soon as a second SOL ETF is approved. Indeed, Brazil has officially greenlit the second exchange-traded fund for the crypto. Now, the market is expecting the asset to break away from its current position.
Solana dropped to $139 on Wednesday as the asset is caught in its current area. Yet, bullish sentiment has protected it from further losses. Despite concerns regarding regulatory battles and an ETF in the US, SOL could have higher gains in store amid some very important developments.
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Solana is Stuck at $140, but a Breakout Could be Nearing
Like the greater crypto market, Solana has had a volatile month. The token is down more than 19% over the last 30 days, according to CoinMarketCap. Moreover, it has dropped almost 4% in the last week as the asset fights to maintain the $140 level.
That could be set to change, as Solana may be nearing a 40% surge with its second SOL ETF getting approved in Brazil. The price has certainly been stagnated, with little room for optimism. The cryptocurrency had rejected a breakout to $150 yesterday at the 20-day and 50-day exponential moving average resistance.
However, that doesn’t change the current standing of the token. Specifically, SOL finds itself at a crossroads. On the one side, there is a breakout to the $200 level. Yet, if it is unable to break through the support at its current price, a fall could be assured. In that case, the toke would drop to the $130 mark in concerning fashion.
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The market is hopeful for the former scenario to come to fruition. That is certainly driven by ETF excitement. Although the United States’ situation with a SOL ETF is still worrisome, Brazil has stepped up. Hashdex, an asset manager based in the country, is set to launch the second Solana ETF in the country.
The firm, which has more than $962 million in assets under management, has partnered with Brazilian bank BTG Pactual. The launch of that product could mean all the difference. Data from Santiment notes that SOL has seen a weighted sentiment increase to 1.935.
That bullish signal indicates that there is a positive market sentiment. An increase in long positions, hitting $3.57 million on Wednesday, shows traders are betting on a price increase.