Solana’s Bullish Breakout: Key Support Levels to Watch as ETF Hype Grows

SOL remains one of the most attractive charts in the cryptocurrency market. As highlighted by CryptoJelle, an analyst, despite holding coins purchased at around $20, there’s a lingering feeling of underexposure. The recent market movements underscore Solana’s robust performance and the growing anticipation around potential ETFs.

The journey of $SOL began with a notable uptrend from November to March. During this phase, the price exhibited a strong bullish momentum, marked by a series of higher highs and lows. This period was characterized by significant buying pressure, driving the price upwards with acceleration.

However, the upward trend faced a challenge as the price encountered resistance in March. This led to a consolidation phase that lasted from April to June. During this time, the price moved sideways, establishing a range with clear support and resistance levels. A rounded bottom pattern started to take shape, suggesting either a reversal or continuation of the previous trend.

The breakout phase commenced in late June. The price successfully breached the descending trendline, signaling the end of the consolidation phase. Following the breakout, the price retested the previous resistance level, now acting as support. This retest was crucial in confirming the continuation of the bullish trend.

Currently, the key support levels to watch include $129, which held firm during the consolidation phase, and $145, where the price found support post-breakout. On the resistance front, $170, the upper boundary of the consolidation range, initially posed a challenge. Presently, $220 stands as the new resistance level at recent highs.

At press time, Solana’s price is at $171.07, with a 24-hour trading volume of approximately $3.98 billion. Despite a slight 2.84% decline over the last 24 hours, the overall outlook remains positive. 

Franklin Templeton’s recent optimism about cryptocurrency ETFs adds to the excitement. The firm, known for previously  launching spot Bitcoin ETF, is now considering a Solana ETF.

Franklin Templeton’s enthusiasm reflects broader industry trends. Their spot Ethereum ETF, launched on the Chicago Board Options Exchange (CBOE), underscores the growing acceptance of digital assets. They have waived fees for the new fund until January 2025, highlighting their commitment to expanding the ETF market.

The anticipation around a Solana ETF has intensified following VanEck’s and 21Shares’ recent filings. These moves suggest that Solana-based ETFs could be approved by the SEC around mid-March 2025. This development aligns with predictions that Ethereum ETFs will pave the way for more crypto products, including those based on Solana.