SOL dips below $140 as market sentiment remains bearish

Key takeaways

• Solana is down by less than 1% and is currently trading below $140.
• Canary Capital and Fidelity announced the launch of their spot Solana ETFs SOLC and FSOL on Tuesday.

SOL down 1% despite positive fundamentals

SOL, the native coin of the Solana blockchain, is down by less than 1% in the last 24 hours and is currently trading below $140. This bearish performance comes despite Canary Capital and Fidelity announcing the launch of their spot Solana Exchange Traded Funds (ETFs), SOLC and FSOL, on Tuesday.

The news boosted market sentiment amid growing institutional investors. However, it didn’t translate into a positive rally for SOL, as the coin continues to eye the weekly support level around $128. 

Fidelity became the fourth asset manager to launch an SOL ETF and also added a staking feature to the fund. This latest development indicates growing institutional interest in Solana-based investment products, which could become a bullish outlook for SOL in the long term. 

SOL could retest the $128 low as bearish momentum persists

The SOL/USD daily chart is bearish and efficient as Solana has underperformed over the past few days. SOL faced rejection at the daily level of $168.79 last week and has lost over 22% of its value since then. At press time, SOL is trading above $136 per coin after hitting the $144 level on Tuesday. 

If the current support level at $128.68 continues to hold, SOL could extend the recovery toward the next major resistance and TLQ level at $160. The RSI on the daily chart currently stands at 34, indicating that the bearish trend remains strong.

However, if SOL’s daily candle closes below $128.68 over the next few hours, the coin could extend its decline toward the next daily support at $118. Currently, the trend and order flow are negative, indicating that sellers are in control.

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