Key insights:
- SOL price has remained in a downtrend despite the buzz around the Solana ETF.
- Solana’s (SOL) daily chart indicates that the asset is currently at a key level, presenting a make-or-break situation.
- If SOL closes a daily candle below the $118 level, it could drop by 35% to reach $77.
Despite the buzz around spot Solana Exchange Traded Fund (ETF) or other positive developments, Solana’s (SOL) price remains in a prolonged downtrend.
Solana (ETF) Latest Update
Recently, asset management giant Fidelity Investment filed a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) through the Cboe Exchange to list a Solana ETF on the public stock exchange.
However, the $5 Trillion Wall Street giant has yet to submit an S-1 filing.
With this move, Fidelity has joined the race alongside Grayscale, Franklin Templeton, VanEck, Canary Capital, and others.
Despite growing interest from Wall Street giants, SOL price has remained in a downtrend.
At press time, SOL was trading near $125.80, reflecting a decline of over 1.80% in the past 24 hours.
During the same period, the asset’s trading volume dropped by 15%, indicating lower participation from traders and investors, possibly due to market uncertainty.
Solana (SOL) Price Action and Key Levels
Amid the recent price decline, SOL successfully retested its breakdown from the bearish flag and pole pattern. Also, it is now on the verge of a significant price crash.
According to expert technical analysis, SOL has reached the key support level of $121, which has a strong history of price reversals.
If the bearish momentum persists and the price breaches this key level, closing a daily candle below $118, the asset could drop by 40%, potentially reaching the $77 mark in the coming days.
Meanwhile, if SOL holds above $121, it could pave the way for a potential rally, possibly repeating its past price movements.
With all these, SOL continues to trade below the 200-day Exponential Moving Average (EMA), signaling a strong downtrend and weak price action.
Traders Strong Bearish Bet
Meanwhile, intraday traders have followed the same trend, placing strong bets on the bearish side, as reported by on-chain analytics firm CoinGlass.
Data revealed that traders are currently over-leveraged, with key levels at $123.2 on the lower side and $128.2 on the upper side.
At these levels, bulls have built $85.60 Million in long positions, while bears have accumulated $108.30 Million in short positions.
These over-leveraged positions define crucial price levels and reflect bear dominance.
These positions also suggest the anticipation that SOL’s price will not surpass the $128.20 level.