The Solana (SOL) price halted its decline on March 11, rebounding by over 25% as speculation regarding a Solana Exchange-Traded Funds (ETF) launch is gaining traction.
Positive Solana news was reported last week regarding both ETF and futures.
The CME Group launched Solana futures on March 17, while Franklin Templeton filed to launch a spot Solana ETF. Polymarket users predict an 87% chance of an ETF approval this year.
The SOL price action reflects this optimism, as Solana has reclaimed important resistance levels. Based on positive news, SOL is now attempting to regain even more losses from 2025.
Solana’s weekly time frame analysis shows that the price has fallen significantly since its all-time high of $295.83 in January.
In the next nine weeks, the SOL price created seven bearish weekly candlesticks, leading to a low of $112 in March.
However, Solana has bounced since (green icon), preventing a breakdown from the $125 horizontal support area.
This is a critical support area since it has existed for over a year and acted as a spring that took the SOL price to its all-time high.
Despite the bounce, technical indicators are still bearish, evident by bearish divergences (orange) in the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD).
The indicators also trend downward and have fallen below 50 and 0, respectively, confirming the bearish trend.
However, even though the weekly time frame predicts a bearish Solana, short-term bounces are possible as long as SOL trades above the $125 support area.
The breakout becomes even more important when combined with SOL reclaiming the $140 horizontal resistance area.
Furthermore, the RSI and MACD have generated bullish divergences (orange). The RSI crossed above 50 today, while the MACD is moving toward positive territory.
As a result, despite a bearish long-term trend, the daily time frame SOL chart suggests the price will bounce in the short term. The closest resistance levels are at $183 and $205.
The $183 level is horizontal and Fibonacci, so it will likely provide strong resistance once SOL reaches it.
Solana’s Rally Will Continue
Solana’s price bounced on March 11, preventing a breakdown from a long-term horizontal support area at $125.
The daily time frame readings suggest that the most likely future outlook is upward toward at least $183.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
