Over the weekend, the cryptocurrency market experienced a slight decline, putting Solana in a vulnerable position as it approaches a critical support level of $140.
Why is the $140 Mark Crucial for Solana?
The volatile crypto market has dragged Solana down since it hit a peak of $168 on June 11. Over the following days, the asset lost ground, leading it to test the critical $140 barrier on June 13. This support level is vital as Solana has previously rebounded from this point during significant sell-offs affecting major altcoins.
How Likely are ETF Approvals to Support Solana?
The long-term outlook for Solana remains promising due to the possibility of ETF endorsements. Analysts believe the SEC may begin approving ETFs tied to certain cryptocurrency indices, potentially leading to an "altcoin ETF summer" next month. Indications of favorable outcomes for ETF applications related to Solana and staking add to this optimism.
What’s Next for Solana?
Currently trading around $146 after a slight uptick, SOL is at a crossroads. Continued selling could push it down to the $100 mark. However, if demand picks up, bulls will aim to break through the $160 and $174 moving averages for a positive trend shift.
The intersection of market conditions and potential regulatory changes marks a critical period for Solana. The coming weeks will test both the resilience of its support levels and enthusiasm surrounding future ETF developments, which could together dictate its trajectory in the volatile crypto landscape.
