Solana Faces Bearish Trend Despite Excitement Over QSOL ETF Application

  • Solana has experienced a sustained decline in the last seven days.
  • Despite the application of a Solana ETF, negative market sentiment persisted.
  • After a sustained downtrend, Solana [SOL] caused increased hype after 3iQ, a Canadian digital asset management company, applied for a SOL ETF. In Report, 3iQ reported on X, “3iQ Corp is pleased to announce that we have submitted a preliminary prospectus for the Solana Fund (QSOL) in Canada in an initial public offering.”

An in-depth look at Solana’s current market trends and upcoming ETFs, offering insights into future prospects.

Market implications of QSOL’s application

Over the past week, Solana’s market value has seen a notable downturn despite the announcement of the QSOL ETF application. Although the news did stir some excitement, it didn’t significantly alter the prevailing negative market trend.

Several crypto analysts, however, maintain an optimistic outlook. For instance, Ash Crypto shared his views on X, asserting, “Sol is now retesting its support level. Everything is screaming bullish for Solana.”

Prevailing market sentiment

Data from COINOTAG’s analysis shows that market sentiment towards Solana remains bearish despite recent announcements. At press time, Solana was trading at $134.63, marking a slight upward movement of 0.66% in the last 24 hours, but reflecting a 6.53% decline over the past week.

The trading volume for SOL has also dropped by 62% to $738 million, and its market cap saw a minor increase of 0.59% to $62.2 billion, as per CoinMarketCap’s latest figures. Indicators such as the Relative Strength Index (RSI) and Bollinger Bands continue to highlight selling pressure and potential further declines.

Will SOL recover or decline further?

The future trajectory of Solana largely hinges on its ability to hold its current support levels. Analysis from COINOTAG suggests that if SOL manages to maintain its support around $127, it might challenge the resistance at approximately $155. However, failing to hold this support could see the cryptocurrency decline further to levels between $121 and $120.

Conclusion

In summary, while the application for a Solana ETF by 3iQ introduces newfound excitement and potential for broader investment, market sentiment remains largely bearish. Investors should closely watch Solana’s support levels for cues on future performance. The coming weeks will be critical in determining if SOL can reverse its current downtrend or if further declines are on the horizon.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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