Brazil Greenlights Second Solana Spot ETF: Here’s What it Means for SOL’s Price

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Harvey Hunter

Content Writer

Harvey Hunter

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Harvey Hunter is a Content Writer at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.

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Last updated: 

August 21, 2024

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Over the past 24 hours, Solana’s price has experienced a notable 2.79% dip, contributing to the wider market’s decline.

This downward movement occurs amidst a significant development in Brazil, where the country’s financial regulator approved the second Spot-Based Solana Exchange-Traded Fund (ETF).

However, this hasn’t alleviated Solana’s recent struggles. The altcoin remains 2.23% down since last Wednesday, underperforming most major altcoins and failing to gain the traction needed to break out of its current range.

Despite the ETF approval, engagement in Solana remains low, with trading volume crashing 28.55% to $1.657 million in the past 24 hours

Brazil Greenlights Second Solana Spot ETF – Why is Solana Still Down?

Brazil’s Securities and Exchange Commission (CVM) approved its second Solana ETF, dubbed “Hashdex Nasdaq Solana Index Fund,” managed by Hashdedx, in collaboration with major Brazilian investment bank BTG Pactual.

The sub-par market reaction to this news may be attributed to the fact that the ETF is still in its pre-operational stage – it is not yet openly tradable for investors. As a result, Solana’s price has yet to benefit from potential inflows that the ETF could generate.

This new approval comes shortly after the CVM greenlit Brazil’s first Solana ETF, introduced by QR Asset Management, on August 8.

Likewise, QR Asset’s ETF is still in its pre-operational stage, awaiting final approval from the B3 stock exchange, and is expected to launch in the next two months.

The addition of another Solana ETF has widened the floodgates for institutional capital, expanding its reach into the traditional finance market in Brazil, providing access to the Solana ecosystem without purchasing and storing SOL tokens directly.

Solana Price Analysis – Will the Solana ETFs’ Launch Ignite a Surge?

As the Solana price remains seemingly stagnant, consolidating within a tight range, there is optimism that once these ETFs launch and the inflows they generate materialize, Solana could be pushed out of its recent slump.

Since August 12th, the Solana price has remained range-bound, trading within a tight range between $146.75 and $137.75. Despite multiple tests, it has struggled to find the strength to break higher.

Most Notably, the Relative Strength Index (RSI) (purple) remains below its neutral line at 40. While the asset isn’t deeply oversold, it leans bearish.

The weak buying pressure reflects cautious sentiment among traders, which has prevented Solana from gaining upward momentum in the near term without substantial demand.

Likewise, Solana’s Chaikin Money Flow (CMF) is struggling to break out of negative territory, currently sitting at -0.03. This indicates persistent selling pressure, making any potential price rally challenging.

Meanwhile, the dots that comprise the Parabolic Stop and Reverse (SAR) indicator have been below the Solana price since August 8th. This highlights the presence of an uptrend, with the SAR providing support, suggesting that the price is likely to continue rising.

As the 200-day EMA (blue) continues to remain consistent in its sideways trend, it signals a strong foundation for a potential rebound. This solid base, coupled with substantial ETF inflows upon their launch, could serve as the driving force behind a significant recovery in Solana’s price trajectory.

This Solana Based Low Cap Gem Could Rally Twice As Hard

Although Solana is likely to see some upside once these ETFs come to market, its ecosystem is host to emerging opportunities with higher upside potential.

The most prominent of which is a new Solana GameFi token Mega Dice ($DICE), the native token to the Mega Dice platform – a top brand in the crypto casino domain, boasting over 10,000 active players monthly and exceeding $50 million in monthly wagering.

The platform offers utilities such as casino cashback, airdrop rewards, and NFT perks for holders. Something that may be credited to its instant success, raising over $1.7 million in its presale so far.

The team looks to the success of Rollbit ($RLB) as a baseline. Given its superior feature set, DICE buyers are confident that Rollbit’s peak 8,000% return for its early investors is more than achievable.

As the GameFi industry surges forward, crypto gambling emerges as one of its fastest-growing and most innovative subsectors, boasting an estimated market value of $250 million in 2023.

Join the Mega Dice community on X and Telegram to stay up to date on the latest announcements.

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