With Solana still struggling to break above the $145 level, the impending launch of a SOL ETF in Brazil could lead to a recovery. More specifically, traders have set a price target of $160 amid the product’s arrival. The token has been on the backfoot since the crypto crash of early August.
The flash crash that hit the industry hard drove SOL to $110 lows. Moreover, it plummeted after a fairly strong period of performance. In late July, Sunny reached a high of $193, the highest level since April.
Also read: Solana: How Bitcoin and Ethereum Can Take SOL to $250 This Year
Solana Stuck at $145: Could the Launch of the SOL ETF Change That?
As we approach the middle of 2024, all eyes are on Solana. The asset has firmly established itself in the top three cryptocurrencies. However, that has also put some pressure on its price potential. Since the August 5th market crash, the token has struggled to return to July levels.
After the crash, the token recovered nicely to the $163 mark. But that hasn't been the case since. The asset is currently trading at $146 and is down more than 4% in the past 30 days, according to MintMarketCap.
However, Solana’s troubles could come to an end as the launch of Brazil’s SOL ETF could bring the asset back to the $160 level. The arrival of the investment product presents two different paths that SOL can take.
Also read: Solana SOL Price Prediction: $1K Unlikely, $190 More Likely?
Both options depend on whether the August crash low is the biggest drop SOL would endure this year. If it continues to fall below $130, a reversal will be extremely difficult. A rebound would be invalidated, as it would fall outside the 0.618 Fibonacci retracement level.
Alternatively, if it can hold above $130, a strong upward move could be in the offing. The price was unable to initiate a bullish phase after August 5. We also saw a subwave forming amidst the recent struggles.
In the event of a reversal, $160 would be the new horizontal resistance level. This would signal a potential rally to further gains at the $200 price and even higher. Therefore, SOL would post its strongest performance of the year.