Solana price held firmly above the $122 level over the weekend after the bears threatened to stage breakdown when the crypto market wobbled on June 18, on-chain data analysis explores how investors positioning for the impending SOL ETF launch in Canada could spark a bullish trend reversal in the coming week.
Solana ETF Approval in Canada Spurs Bullish Reversal
Over the past month, Solana price took a major hit as investors flocked towards Ethereum markets in search of short-term profits after the ETH spot ETF approval verdict from the US SEC.
However, as the short-term reactions wear out, on-chain data now reveals that Solana’s core investors had spent the volatile market phase positioning for potential long-term gains from the new market developments.
More so, on June 21, an investment firm in 3iQ announced that it filed a successful application to launch Solana ETFs in Canada. Since the confirmation, Solana bulls have shown strong resilience amid the month-long downtrend, preventing a breakdown below the critical $122 price level.
As seen in the chart above, Solana’s price is holding up precariously above the critical $122 support level highlighted by the lower-limit Bollinger band indicator.
But having succumbed to a 32% downswing in the last 33 days dating back to May 21, 2024, the stage now looks set for bulls to re-enter the fray and scoop the dip.
As the new trading week begins on Monday, June 24, investors will look out for fresh developments surrounding the Solana ETFs filing in Canada. It is holding up precariously. This move now looks set to spark a major bullish reversal in the coming weeks.
If there are positive movements around impending Solana ETP approval in Canada, the prospects of deep-pocketed Canadian hedge funds, family offices, retirement funds etc funnelling funds into Solana markets is expected to spark bullish activity among crypto-native retail and whale investors alike.
Having averted a breakdown below $122, this move could now looks set to play a pivotal role in SOL market trends in the week ahead.
Solana Price Forecast: Imminent rebound towards $150?
Solana price has endured a considerable downward trend in the last 30-days. However, the RSI data now indicates that Solana is currently in an oversold condition, sitting at 31.59.
This could attract buyers looking to capitalize on a potential rebound. If bullish momentum picks up, the immediate resistance level to watch is the 20-day SMA at $149.74.
A break above this could set the stage for a move towards the upper Bollinger Band at $176.64, a significant resistance level that, if breached, could mark the beginning of a sustained upward trend.
Investors will closely monitor developments regarding the Solana ETF in Canada. Positive news could see a substantial influx of capital from institutional investors, further bolstering Solana’s price.
If the price manages to stay above $122, it could consolidate and build a base for a potential rally. Conversely, failure to maintain this support level could lead to a further decline, testing lower levels.