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- Binance strategically sold SOL at its peak and it is now accumulating again.
- Solana holds above a key support level, with indicators hinting at a potential reversal.
- A possible Solana ETF could further impact SOL’s price trajectory
Solana (SOL) is experiencing renewed investor interest after a sharp decline from its January peak of $293. The cryptocurrency recently dropped to a three-month low of around $160. However, recent developments indicate a potential reversal as Binance, one of the largest cryptocurrency exchanges, has resumed accumulating SOL.
Crypto analyst MartyParty mentioned they observed Binance offloading a large amount of SOL closer to its all-time high in January. The exchange is again starting to buy SOL at lower prices, suggesting it has confidence in the asset again. Such an accumulation pattern may indicate institutional players and large investors are buying into the retracement, which should provide floor price support.
An Overview of Solana’s Market Standing and Key Technical Metrics
At the time of writing, SOL is trading at $173.72, reflecting a 2.86% increase in the past 24 hours. The price is still trading above $160, and no further decline has been seen. This support level has, however, been instrumental in providing support for the cryptocurrency following the latest declines.
SOL is below the 20-day SMA at $193.92 and the upper Bollinger Band at $219.50. The 20-day SMA remains a critical level for bulls now that the price has tested it as resistance and returned below it, indicating that bulls need to breach it to pave the way for a breakout. The lower Bollinger Band at $168.34 shows that the price is in the oversold area, which may indicate a bounce back.
The MACD indicator indicates weakness as the blue MACD line remains below the orange signal line, and the histogram remains in the red territory. This suggests that while bearish momentum persists, weakening selling pressure might signal a shift in the trend.
Source: Tradingview
Potential Catalysts for Solana’s Price Recovery
Whether Solana would receive a green light for an exchange-traded fund (ETF) might also affect SOL. Data shows that several asset management firms have filed for Solana-based investment products, including Grayscale, 21Shares, Bitwise, and VanEck. Approval of a Solana ETF in the U.S. market could lead to extensive institutional adoption, thus providing an excellent platform for the coin’s long-term development.
While short-term price swings are unpredictable, an intensified buy signal from Binance and growing institutional appetite signal renewed accumulation. If the support at SOL is sustained and the key levels of resistance are breached, the digital currency could experience a bullish run in the near future.
