Is SOL about to enter a bull run? Don't rush into it just yet! After reading this, you'll likely make the right choice.
I’m sure you all know that last night the price of SOL plummeted from $137 to $130, which probably caused a lot of panic. Don't worry, I'll explain in straightforward terms Franklin Templeton's new moves regarding the SOL ETF, along with some technical analysis. After reading this, you'll be well-informed.
Franklin Templeton's spot SOL ETF has just launched, initially purchasing 17,000 SOL for $2.4 million. What's even more impressive is that it counts staking rewards as income. The money earned from staking SOL, with the help of institutions, will be directly distributed to you as ETF returns. This is a first in the crypto space, effectively opening a channel for retail investors to earn effortlessly.
However, don’t just focus on the good news! When the first week's data came out, the SOL price not only didn't rise but instead dropped by 20%, hitting a low of 152 dollars, and is now slowly rising back to 133 dollars. Why is this happening? It's actually because the good news before institutional entry has already been mostly digested by the market, and short-term speculative funds made money and then ran away. Now is truly the time to compete in strength.
Last night, the SOL price fell to a low of 130 dollars, just hitting a strong support level, and has now rebounded to 133 dollars. Here, I will highlight a few key points.
On the support level side, 130 is a key position. If it falls below this price, it may continue to drop to 128 for support; if it rebounds, the first resistance level to watch is 139.
In terms of indicator signals, the RSI is currently 39.59, close to the oversold area, and the MFI is 39.53. This indicates that the selling pressure is weakening, but it has not fully reversed yet.
In terms of volume change, the trading volume is 1,190,000 lots, which is half of the 5-day average of 2,910,000 lots. This indicates that the market is currently in a state of low-volume consolidation, with both bulls and bears watching to see which direction the market will go.
I believe that the recent drop to 130 dollars is about to bottom out, and the next likelihood is a slow rise with fluctuations. Why do I say this? Because institutions have just launched ETFs to enter the market, they certainly won't let the SOL price drop too harshly; from a technical perspective, the support level has held. However, don't expect it to surge all at once, as the resistance levels at 139, 143, and 146 dollars are pressing down, and without significant funds to break through, it will be hard to achieve a direct breakthrough.
Specifically, how to catch the entry points involves too many nuances and is not suitable for detailed discussion. If you really want to make money, the big guy in the chat room will provide you with one-on-one guidance.
