With Solana still fighting to break out from the $145 level, the impending launch of a SOL ETF in Brazil could be set to lead a bounce back. Specifically, traders have anticipated a $160 target amid the product’s arrival. The token has been on the back foot since the early August crypto crash.
The flash crash that greatly affected the industry drove SOL to $110 lows. Moreover, it plummeted after having a rather strong spell of performance. During the end of July, Solana reached heights of $193. That had been its highest level since April.
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Solana Stuck at $145: Can SOL ETF Debut Change That?
Approaching the midpoint of 2024, all eyes are on Solana. The asset has clearly established itself in crypto’s top three. Yet, that has also placed some pressure on its price potential. Since the August 5th market crash, the token has struggled to get back to its July levels.
After the crash took place, the token rebounded quite nicely to the $163 mark. But that hasn’t been the case since. The asset is currently trading at $146, and is down more than 4% in the last 30 days according to CoinMarketCap.
However, the Solana struggles could be set to end as the Brazil SOL ETF launch could have the asset targeting the $160 level once again. The investment product’s arrival presents two distinct paths that SOL can travel.
Also Read: Solana SOL Price Prediction: $1K Unlikely, $190 More Probable?
Both options depend on whether the August crash low is the largest drop SOL would endure this year. If it continues to decline below $130, a reversal becomes immensely difficult. A rebound would be invalidated, as it would fall outside of the 0.618 Fibonacci retracement level.
Alternatively, If it can hold above $130, there could be a strong upward movement in store. The price was unable to start a bullish phase after August 5th. We also saw a subwave develop amid its recent difficulties.
In the event of a reversal , $160 would be the new horizontal resistance level. That would signal a potential increase to further gains at the $200 price and even higher. Therefore, setting SOL up to have its strongest performance of the year.