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Bearish Clouds Hover Over the Solana (SOL) Price Rally Despite a Rebound—Here’s Why!
Solana’s recent price rebound, triggered just before the previous day’s close and preventing excessive price drain below $110, has raised concerns about the token’s long-term prospects. Although the bullish momentum initially appeared to have shaken off some of its doubts, it is crucial to emphasize that the possibility of an increase in upward pressure may prevail until SOL does not break the required threshold.
The cryptosphere witnessed a relief-driven rally following fresh updates from the White House regarding tariffs and acceptance of a 30-day ceasefire between Ukraine & Russia. This development led to increased investor confidence, resulting in a positive impact on Bitcoin and other altcoins. Solana’s price reversed the possibility of drawing below $110 as the rebound pushed it back above $120. Currently, SOL is situated within its ‘safe zone,’ but the fear of a pullback may persist until and unless the token secures a pivotal resistance.
Buzz Around Solana-ETF, Future Contracts & More
The SEC has delayed its decision regarding ETFs for Solana and other cryptos, believed to be crucially important for future institutional adoption. Meanwhile, there is an estimated 70% chance of approval for Solana ETF. On the other hand, the CME group is about to launch a futures contract for Solana on March 17, providing a platform for investors to engage with SOL.
Concurrently, Solana has maintained its dominance in decentralized exchange trading volume, surpassing Binance Smart Chain and Ethereum for the fifth consecutive month. Additionally, a recent funding round for Solana-based decentralized computing platform Voltix secured $10 million, indicating an ongoing surge of investor interest within the ecosystem.
These developments shed light on Solana’s growing influence and increasing institutional interest in the token.
Will These Developments Impact the Solana (SOL) Price Rally?
Solana is currently trading at around $123.25, displaying signs of recovery but continues to face hurdles due to recent market conditions. The broader crypto market is experiencing panic, with technical indicators suggesting weak momentum and fading network activity, which raises concerns about SOL’s ability to regain traction.
Upon dropping below the crucial range, SOL’s price entered a bearish territory, indicating that bears might soon take control of the rally. Once the price dipped below the support of the rising parallel channel, Ichimoku clouds prepared for a bearish crossover. Additionally, the RSI is moving towards its lower threshold, and CMF has plummeted just below 0, hinting at the token’s sliding under long-term bearish influence.
Experts propose that SOL must reclaim the pivotal resistance at $133 to flip over the prevailing bearish influence, which may drag levels below $100.
