- Solana (SOL) drops 4.21%, trading at $127.74, down from its intraday high of $134.88.
- The Solana futures ETF launch on March 20 fueled a 12% surge, but momentum has slowed.
Solana (SOL) has taken a step back after a recovery phase, dropping over 4.21% in the past 24 hours. As of March 21, 2025, the altcoin is trading at approximately $127.74, marking a slight 0.045% decrease from the previous close. Throughout the day, SOL fluctuated between a high of $134.88 and a low of $126.86. Despite this short-term decline, Solana has gained around 2.23% over the past week.
This recent price movement follows a notable surge earlier on Thursday, where SOL’s price increased by 12% to surpass the $136 mark. This uptick was largely driven by the announcement from Volatility Shares regarding the launch of Solana futures ETFs, which began trading on March 20, 2025. The introduction of these ETFs has heightened institutional interest in Solana, contributing to increased trading volumes and open interest in SOL futures.
Looking ahead, analysts maintain an optimistic outlook for Solana. Some forecasts suggest that if momentum picks up, SOL could reach $170 within the next seven days, representing a 17.53% increase. However, the broader crypto market remains volatile, with leading assets like Bitcoin (BTC) and Ethereum (ETH) also facing downward pressure.
Mixed Signals in Solana’s Technical Analysis
Technical analysis presents a mixed picture in the 4 hours SOL/USDT chart. SOL has formed an ascending triangle pattern, often associated with potential breakouts. Additionally, here are observations of an inverted head-and-shoulders pattern, typically considered a bullish indicator, suggesting a potential trend reversal to the upside.
Despite this, the altcoin’s Moving Average Convergence Divergence (MACD) line stands below the signal line, further confirming a bearish takeover. On the other hand, its Chaikin Money Flow (CMF) indicator value stands at 0.09, according to TradingView data. This indicates increased capital flow into the Solana. If investors show increased interest in the altcoin, it could lead to a change in price direction. However, this is not confirmed by other indicators.
For now, strong support lies between $125 and $120, a level buyers have defended multiple times. If this support holds, it could fuel a bounce back. Otherwise, a further dip below $125 could lead to $118 might be on the cards before any potential recovery.
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