Solana (SOL) Eyes $300, But Only If This Critical Support Holds
Solana (SOL) is trading below a key level that many traders are watching, as the $190 mark has become a critical support zone. If the asset remains under this level, upward movement toward $240 or $300 may not materialize.
At press time, the price sits at around $185 after a 4% decline over the past day.
$190 Remains a Key Level
Aside from today’s nosedive, SOL has remained mostly within a trading range in the past week, between $180 and $210. Analyst Ali Martinez outlined the aforementioned key support level, which is currently being tested.
Currently, Solana is moving within an ascending channel pattern. The $190 level aligns with the lower area of this channel. Holding this point could support a rebound, while a move below it increases the chance of a slide toward $170. A projected path on the chart outlines a possible short-term dip below $190, followed by a bounce.
Technical Outlook Shows Weakness
The Relative Strength Index (RSI) is at 42, pointing to slowing momentum. It remains under its average value of 44, which reflects continued pressure on the price. RSI values below 50 generally suggest reduced buying interest.
Source: TradingView
Meanwhile, the MACD reading is showing early changes. The MACD line is at -5, and the signal line is at -5. The histogram is slightly positive at 0.5. This setup shows that the trend may be starting to shift, but there is no strong confirmation yet from price action.
Futures Market Participation Grows
Open interest in Solana futures has reached $10.48 billion. This follows a bounce from recent lows near $180. Although this level is below past highs that were seen during price rallies above $250, it shows that more traders are entering the market.
Source: Coinglass
Despite the increase, not all analysts are optimistic. Ted Pillows noted,
This suggests limited institutional demand at the moment.
ETF Launches Draw New Attention
Solana saw major activity in the ETF space. As CryptoPotato reported, the Bitwise Solana Staking ETF (BSOL) recorded $56 million in trading volume on its first day. This was the highest day-one volume among all 850 ETFs launched in the U.S. this year.
Separately, a spot Solana ETF has gained regulatory approval in Hong Kong. These new investment products are giving broader access to Solana and may attract capital from traditional markets going forward.
The post Solana (SOL) Eyes $300, But Only If This Critical Support Holds appeared first on CryptoPotato.
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