Solana ETFs’ Canada Launch Sparks New Phase for SOL Amid Consolidation

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Solana (SOL) is currently trading around $130, experiencing a slight drop of 2.7% over the past 24 hours. However, this minor price correction is overshadowed by significant positive news: the imminent launch of spot Solana Exchange Traded Funds (ETFs) in Canada, potentially paving the way for increased institutional adoption.

Canadian Regulators Greenlight First Spot Solana ETFs as U.S. Market Waits

Following permission from the Ontario Securities Commission (OSC), several spot Solana exchange-traded funds (ETFs) are slated to open in Canada on April 16, marking a notable change for the Solana ecosystem. With staking capabilities to create yield for investors, asset managers Purpose, Evolve, CI, and 3iQ have license to offer ETFs containing Solana tokens directly.

The first significant permitted spot ETFs for cryptocurrencies outside of Bitcoin and Ethereum in North America, the Canadian debut could establish standard for next approvals. These Canadian products will contain the actual cryptocurrency, unlike its U.S. counterparts who now only sell SOL futures ETFs, therefore maybe offering greater direct exposure to SOL’s market swings.

“This marks our first look at the altcoin race,” said Bloomberg analyst Eric Balchunas, stressing the relevance of this development in the larger scene of cryptocurrencies ETFs.

SOL/USD Technical Analysis: Critical Resistance Levels Approach

Solana SOL/USD is showing a 2% rebound following a 2.7% drop in the previous 24 hours, at press time maintaining at $130. Over the past week, the coin has shown somewhat remarkable performance, gaining over 35% against USD and 20% against Ethereum.

On April 13, the SOL/ETH ratio hit 0.080, its greatest weekly close ever – a technical indication implying further outperformance of the Solana ecosystem. Given that its strength against Ethereum shows capital maybe moving from the second-largest cryptocurrency into Solana, it could be especially important.

From a chart standpoint, Solana has lately invalidated a bearish declining triangle pattern developing over several months. While the Relative Strength Index (RSI) is positioned to retest its signal line from below, momentum indicators are showing improvement with the MACD histogram having a lower reading (indicating reducing negative momentum).

Key Levels to Watch

Near $147, Solana encounters immediate technical resistance; if broken, this will confirm the conclusion of a rounded bottom pattern and maybe drive SOL toward the $177 mark. But the $ 163 level poses still another major resistance that August through October 2024 found challenging.

On the down side, the key support level to keep an eye on is $125; stronger basic support has been developed around $100, where notable buyer interest has regularly surfaced past recessionary times.

Solana Network Activity Concerns Amid Price Recovery

Even with SOL’s price recovery, on-chain data highlight issues that might complicate the road to new all-time highs. On April 14, network fees dropped over 97% to just $898,235 from $35.5 million in January. Comparably, daily decentralized exchange (DEX) volumes on Solana have dropped to $2.17 billion, a 93% decrease from the January 20 peak of $35.9 billion.

This notable decline in network activity, especially on leading dApps like Raydium, Pump.fun, and Orca, points to Solana’s recent price rebound may lack basic support from real blockchain use.

To maintain the trend, SOL would probably need a significant rise in network activity and transaction volumes if it were to approach its all-time high of about $295 attained in January. Notwithstanding recent strong price activity, SOL is still 54.5% off its record high right now.

Although the introduction of Canadian spot ETFs should generate fresh institutional interest into the Solana ecosystem, it needs to be seen if this results in more on-chain activity as the market waits for more developments.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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