Solana price could be facing a major drop, according to crypto analyst Ali. In a recent analysis, Ali suggested that SOL might be retesting the breakout zone from a right-angled ascending broadening pattern. The analysis points to downside potential for Solana price, with a target of $65. This bearish outlook comes after a period of price weakness, with SOL’s price falling by 1.2% in the last 24 hours.
Ali’s technical analysis focuses on a right-angled broadening ascending pattern on Solana’s price chart. The analyst believes that SOL is re-testing the breakout pattern area, which could lead to further downside action if the level fails to act as support. Some other analysts in the crypto space share this bearish view, with SatoshiOwl noting that Solana is breaking down from a trendline on the 1-hour chart. However, confirmation is still needed from 1-hour and 4-hour candle closings before a definitive move can be confirmed.
On the other hand, not all analysts share this bearish view. Trader David identified bullish signs for SOL, noting that the channel continues to move upward after a 33% correction. He expressed optimism that Solana will reach new heights again, particularly as it rests on a strong support level. Despite the mixed opinions from analysts, Solana is experiencing a potentially positive development on the institutional front with the approval of Solana ETFs in Canada by the Ontario Securities Commission (OSC).
This regulatory clearance paves the way for Solana ETFs to come to market in Canada. It may offer institutional investors a regulated investment product for exposure to Solana, rather than direct exposure to cryptocurrency. The timing of this news is interesting, considering the technical uncertainty in Solana’s price action. Bloomberg ETF analyst Eric Balchunas provided background on the upcoming launches, highlighting that Canada will soon launch spot Solana ETFs that also offer staking through TD.
While the initial market reaction to the ETF launch news has been muted, with the Solana price showing little positive momentum, the approval by the OSC could pave the way for new opportunities for institutional investors in Canada. As the market awaits further developments in Solana’s price action, the approval of Solana ETFs could potentially bring a new wave of institutional interest and investment in the cryptocurrency.
