- Brazil’s approval of a Solana ETF could influence other markets like the US and UK, fostering wider adoption of Solana products.
- Increased transaction volumes and a higher PayPal PYUSD supply on Solana, surpassing Ethereum, indicate growing market interest and optimism for a price rally.
Following CNF’s recent report on BlackRock Sticks with Bitcoin and Ethereum, No Solana ETF Planned, despite recent declines in crypto asset prices reported by Mitrade Insights, Solana (SOL) shows promise due to several fundamental and on-chain factors.
The approval of a Solana spot Exchange-Traded Fund (ETF) by Brazil’s Securities and Exchange Commission, the rising supply of PayPal’s PYUSD stablecoin on the Solana network, and increased trader interest are significant factors influencing its outlook.
As shown in the chart below, Solana transactions have increased over the last sixty days, according to Dune Analytics data. This signals a rise in activity and interest from traders.
Key market drivers include: (1) Brazil’s approval of a Solana spot ETF could pave the way for similar products in the US and UK. Asset managers VanEck and Standard Chartered have suggested the potential for such an ETF in the US by 2025. (2) The supply of PayPal’s PYUSD stablecoin on Solana has surpassed $377 million, exceeding its supply on Ethereum. (3) Rising transaction volumes on Solana indicate growing interest from traders.
Resistance and Support Levels for the Solana Market
In the report, Solana has been trading sideways since its March 18 peak of $210.18, with a potential rally towards a $175 target, a key resistance level since mid-April. Before reaching this target, SOL may encounter resistance at the psychological level of $150. The Relative Strength Index (RSI) is at 44.13, indicating indecision among traders.
At the time of writing, Solana (SOL) is trading at $145.07, with a decrease of 0.79% in the past day and 4.71% in the past week. See the SOL price chart below.
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