Solana (SOL) defied the broader market downturn this weekend, holding firm above $122. This resilience comes amidst the anticipation of a Solana ETF launch in Canada, sparking hopes of a bullish reversal in the coming weeks.

Solana Weathers Storm, Eyes Brighter Days

May was a rough month for Solana, with its price tumbling as investors chased short-term gains in Ethereum following the US SEC’s approval of a spot ETF. However, on-chain data suggests that Solana’s core base used this volatility to strategically position for long-term opportunities.

The news on June 21st that 3iQ, an investment firm, successfully filed for a Solana ETF in Canada, further bolstered investor confidence. This development coincided with Solana Bulls preventing a breakdown below the crucial $122 support level.

Technical Analysis Hints at Reversal

As of June 24th, Solana’s price sits precariously above $122, a level highlighted by the Bollinger Band indicator. Despite a 32% decline since May 21st, the stage appears set for a potential resurgence.

Investors are now eagerly awaiting further developments on the Canadian Solana ETF application. Positive news surrounding its approval could trigger an influx of capital from institutional investors like hedge funds and retirement funds. This, coupled with Solana successfully holding above $122, could be a pivotal turning point for SOL in the coming week.

Solana Price Forecast: Rebound to $150 in Sight?

While Solana has experienced a significant downward trend, its current RSI of 31.59 indicates oversold territory. This could entice bargain hunters seeking to capitalize on a potential upswing.

The immediate hurdle for SOL is the 20-day SMA (Simple Moving Average) at $149.74. A decisive break above this level could pave the way for a surge towards the upper Bollinger Band at $176.64. Breaching this key resistance could mark the beginning of a sustained bullish run.

Investor Focus on Canadian ETF Developments

The coming days will be crucial for Solana. Positive news regarding the Canadian ETF could trigger a significant influx of capital from institutional investors, further propelling SOL’s price. Conversely, a delay or rejection of the application could lead to renewed selling pressure.

Solana’s ability to hold above $122 will be another critical factor to watch. If it maintains this support level, it could consolidate and build a base for a potential rally. However, a breakdown below this level could trigger further declines.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.