Fidelity Investments’ proposal to launch a Solana (SOL) spot exchange-traded fund (ETF) has hit a regulatory hurdle as the U.S. Securities and Exchange Commission (SEC) has announced a delay in approval. The SEC is scheduled to open a 21-day public comment period and continue to accept feedback for the next 35 days.
James Seyffart, an ETF analyst at Bloomberg, said on the X platform that the delay was expected. He also emphasized: “The conversations between the SEC and issuers/ETFs should be viewed as a positive signal.”
With hopes of a Solana ETF still alive, the question is: Does SOL have the strength to break through key resistance? Let’s dive into the technical charts to find the answer.
SOL Technical Analysis
On Monday, Solana turned down after touching the 50-day simple moving average (SMA) at $154, suggesting that bears are defending this level aggressively.
However, a positive sign for the bulls is that they are not letting the price fall and are staying below the 20-day exponential moving average (EMA) at $149. The price range is getting narrower, signaling a possible breakout in the next few days.
If the price breaks above the $159 mark, the bullish momentum could be triggered, taking the SOL/USDT pair towards the $168 zone, and further towards $185.
Conversely, if the price turns down and breaks the $144 support level, it would indicate that the bulls have given up the initiative. In that case, the price could retreat to $137, or even $130.
On the 4-hour chart, the pair is forming a bearish triangle pattern — a bearish pattern — that would complete if the price breaks and closes below $144. This scenario could drag the price down to $137, followed by a technical target of $129.
However, the bulls seem to have other plans. They are attempting to push the price above the downtrend line, which would negate the aforementioned bearish pattern. If successful, the price could bounce to $159 — a crucial level to watch. A close above this level would confirm the inverse head and shoulders pattern, with a target of $192.