Solana Price Edges Closer To Breakout As Brazil Approves Spot SOL ETF

Solana price relaunched its recovery bid following news of Brazil’s Securities and Exchange Commission (SEC) approving the first spot SOL ETFs in the country. The ETF nod and an increase in open interest and trading volume add credence to SOL’s bullish outlook in August.

Spot SOL ETF Greenlight Sparks Solana Price Rally

Solana price maintained its earlier revamped bullish case after the Brazil SEC made history by approving the first spot SOL ETF on Wednesday, 7. The move puts the crypto landscape in the country ahead of other jurisdictions, including the US, which has only approved two spot ETF products: Bitcoin ETFs in January and Ethereum ETFs in July.

However, Brazil is the second country to make this bold step after the first Solana exchange-traded product (ETP) in Switzerland went live in June courtesy of 21Shares.

According to a local publication, Exame, the ETF product will mirror the CME CF Solana Dollar Reference Rate index, established by CF Benchmarks, channeling support from the Chicago Mercantile Exchange (CME).

Nonetheless, the actual launch date of the Solana ETF remains unknown as it has to get approval from the Brazilian stock exchange, B3. QR Asset, an asset manager, is responsible for creating the ETF, which will be managed by Vortx.

QR Asset’s Manager and Investment Director, Theodoro Fleury, in a statement, said, “This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors.” He added, “We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets.”

The approval of a Spot Solana ETF in Brazil comes at a time when the crypto community has high expectations for similar products in the US. After the SEC approved Ethereum ETFs in July, focus shifted to other top altcoins, including a spot XRP ETF.

SOL Price On The Cusp Of A Major Rally

Solana price flipped bullish on Tuesday after Monday’s black swan event, which culminated in a crash to $110. The V-shaped trend reversal soared above the $130, $140, and $150 hurdles before stalling at $155 and correcting to $142 during the American session on Wednesday.

News that Brazil will soon debit SOL ETFs triggered another bullish event as traders bought more dips, driving the price to $158. Although SOL price had pulled back to exchange at $154 at the time of analysis, the 50-day Exponential Moving Average (EMA) provided immediate support.

Based on the previous Solana price prediction, bulls must breach the 200-day EMA resistance at $158 to bolster the next move above $160. A buy signal from the Super Trend indicator strengthens the bullish thesis and may increase the probability of Solana climbing to $200.

Solana price faces two short-term challenges at the 200-day EMA and $160. Without a sustained break above these key levels, sellers cannot be ignored, as they will likely increase their presence to push for a retracement. In that case, traders must be alert and aware of a potential pullback to support areas $150 and $140, which serve as key DCA levels.