- Solan has seen a steady decline over the past seven days.
- Despite the introduction of Solana ETF, negative market sentiment persisted.
Following a sustained downtrend, solana (SOL) generated further excitement after 3iQ, a Canadian digital asset management company, filed to create a SOL ETF. In the report, 3iQ said about X:
“3iQ Corp is pleased to announce that we have filed a preliminary prospectus for the Solana Fund (QSOL) in Canada in our initial public offering.”
The QSOL app is a great opportunity for traders and enthusiasts as it will provide the opportunity to profit from SOL bets.
Likewise, it increases the investment pool, thereby expanding opportunities for those seeking to generate income while supporting the SOL ecosystem.
The approval of QSOL will bring diversity and open the door to other altcoins.
Essentially, QSOL’s approval and success will inspire other countries, especially the US, to open the door to similar deals and continually consider ETF approval for other smaller cryptocurrencies.
Market implications of QSOL
There has been a significant downward trend in SOL over the past seven days. Despite the news about the QSOL app, markets failed to demonstrate positivity and reverse the trend.
However, several cryptanalysts were positive about this development. For example, Ash Crypto shared their analysis of X, stating that:
“Sol is now re-testing the support level. Everything looks optimistic for Solana.”
Source: TradingView
Despite the enthusiasm and bullish news, AMBCrypto analysis showed that market sentiment remains bearish. At press time, SOL was trading at $134.63, up 0.66% over the last 24 hours.
It is down 6.53% over the past seven days, with trading volume down 62% to $738 million. SOL’s market capitalization rose 0.59% in 24 hours to $62.2 billion, according to CoinMarketCap.
Source: TradingView
RSI SOL is steadily declining. At the time of publication, the RSI is 35 below the RSI-based moving average of 38. After falling below the base moving average on June 6, it has failed to reverse the trend, indicating selling pressure.
Continued selling pressure saw SOL plummet to oversold levels at press time.
Source: TradingView
According to Bollinger Bands, the next critical support for SOL was around 120. This indicates potential for further declines if it fails to hold the current support level.
Prevailing market sentiment
Analysis of AMBCrypto via Santiment showed a steady decline in open interest from $728 million to $636 million. The continued decline in open interest shows a decrease in appetite and interest in altcoins.
A lower percentage means narrow investors are exiting losing positions without opening new ones, which is bearish sentiment in the market.
Source: Santiment
Likewise, Coinglass’s volume-weighted funding rates have shown a steady decline. Lower funding rates mean more negative sentiment as investors have less demand for long leveraged positions.
Source: Coin Glass
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Will SOL recover or fall further?
AMBCrypto analysis shows that SOL is bearish towards the lower support level around $127.
If the altcoin holds this support level, it will challenge the resistance level around $155. However, if the support level does not hold, it will decline to a level between $121 and $120.
This is an automatic translation of our English version.