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

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.

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