As a seasoned researcher with over two decades of experience in financial markets and a keen interest in the burgeoning world of cryptocurrencies, I find myself deeply intrigued by the recent developments surrounding Solana (SOL). The news of Brazil’s Securities and Exchange Commission (SEC) approving the first spot SOL ETFs is nothing short of groundbreaking.
After receiving approval from Brazil’s Securities and Exchange Commission (SEC) for the first Solana exchange-traded funds (ETFs), there has been a renewed effort in the price recovery of Solana. The authorization of these ETFs, along with an uptick in open interest and trading volume, supports the optimistic forecast for Solana in August, suggesting a potential bullish trend.
Spot SOL ETF Greenlight Sparks Solana Price Rally
Solana price maintained its earlier revamped bullish case after the Brazil SEC made history by approving the first spot SOL ETF on Wednesday, 7. The move puts the crypto landscape in the country ahead of other jurisdictions, including the US, which has only approved two spot ETF products: Bitcoin ETFs in January and Ethereum ETFs in July.
Yet, following Switzerland’s lead, Brazil becomes the second nation to launch such a daring initiative. This was made possible by the first Solana exchange-traded product (ETP), which went live in June, thanks to 21Shares.
As reported by the local newspaper Exame, the ETF (Exchange-Traded Fund) is designed to follow the CME CF Solana Dollar Reference Rate index, a benchmark created by CF Benchmarks and backed by the Chicago Mercantile Exchange (CME), according to this article.
Despite this, the specific release date for the Solana ETF is yet to be determined, as it awaits approval from the Brazilian stock exchange, B3. QR Asset, a fund management company, is in charge of its creation, with Vortx handling its management upon launch.
QR Asset’s top executives, Theodoro Fleury (Manager) and Investment Director, expressed their sentiments by stating that the new ETF underlines their dedication to providing quality and diversification options to Brazilian investors. Moreover, they are pleased to be trailblazers on a global scale in this specific investment segment, thereby reinforcing Brazil’s status as a prominent market for regulated crypto asset investments.
In Brazil, the endorsement of a Spot Solana ETF is occurring amidst increased anticipation within the cryptocurrency community for similar offerings in the United States. Following the Securities and Exchange Commission’s (SEC) approval of Ethereum ETFs in July, attention has been drawn towards other prominent altcoins, such as a spot XRP ETF.
SOL Price On The Cusp Of A Major Rally
On Tuesday, Solana’s price shifted positively following the unexpected event on Monday that caused a plunge to $110, which we now refer to as a ‘black swan event’. However, this setback was swiftly followed by an impressive recovery in a V-shaped fashion, surpassing key resistance levels at $130, $140, and $150. This upward trend halted momentarily at $155 before adjusting to $142 during the Wednesday trading session in the US.
The recent news about Brazil selling SOL ETFs caused a surge in buying among traders due to market optimism, pushing the price up to around $158. However, at the time of this analysis, the SOL price had slightly dropped to $154. Yet, the 50-day Exponential Moving Average (EMA) served as immediate support for the price increase.
According to past forecasts, for a strong push beyond $160, the price of Solana needs to break through the 200-day moving average barrier at $158. A buy signal from the Super Trend indicator adds confidence to this bullish outlook and potentially boosts the chances of Solana reaching $200.
1. The price of Solana encounters two immediate hurdles at the 200-day Exponential Moving Average (EMA) and $160. If it fails to break out consistently above these critical points, investors should be cautious, as sellers may intensify their activity, aiming for a price drop. In such a scenario, traders need to stay vigilant and anticipate a possible correction towards support zones at $150 and $140, which are significant Dollar-Cost-Averaging (DCA) levels.
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2024-08-08 18:04