Will SOL Regain Bullish Momentum as Bitcoin Shows Sustainability Above $60000?

Solana price dropped from $164 to $151 on a low-volatility weekend, registering a 7.5% loss. This pullback can be attributed to a significant decline in classic on-chain activity, including active and new addresses.

Solana price may continue its decline as a result of low on-chain activity and a broader market correction.

Solana price dropped from $164 to $151 over a low-volatility weekend, registering a 7.5% loss. This pullback can be attributed to a significant decline in classic on-chain activity, including active and new addresses. As Bitcoin price shows sustainability above $60000, will SOL’s price regain bullish momentum?

Solana ETF Approved in Brazil

On Wednesday, August 7th, the Brazilian Securities and Exchange Commission (CVM) approved the first Solana ETF. This move provides Brazilian investors with early access to the diversified product of Solana (SOL) cryptocurrency, ahead of U.S. investors, where similar applications are still under review by the SEC with uncertain outcomes.

This ETF will enable investors to gain exposure to SOL without directly purchasing and holding the cryptocurrency. As the U.S. continues to delay approval for a Bitcoin spot ETF, this development marks a significant milestone for cryptocurrency adoption in Brazil.

According to a recent report from Exame, QR Asset and Vortx will manage the ETF, while the launch approval depends on the Brazilian stock exchange (B3). This ETF will track the CME CF Solana Dollar Reference Rate, supported by CF Benchmarks and the Chicago Mercantile Exchange (CME).

The anticipated launch will attract substantial inflow into Solana from the traditional market, potentially driving up demand for SOL.

Solana Price Signals Bearish Reversal

While most major altcoins witnessed notable recovery this week, as the Bitcoin price rallied from $49600 to $60500, registering a 22% growth, Solana price surged from $110 to $163 before settling back down to $152. Subsequently, its market capitalization decreased to $71.8 billion.

This pullback may continue as the dailyの時間足 shows a bearish engulfing pattern below key Exponential Moving Averages (20, 50, and 100). Thisの時間足 signals a potential shift in market sentiment from bullish to bearish.

Should concerns over market correction continue, a potential breach below $150 support could plunge SOL price 16.5% to $126 as it tests the triangle pattern support.

The 4-hour chart also adds to the bearish perspective, highlighting a下降趋势line forming after the August 2nd high at $176. As the price action continues below this下降趋势line and theの時間足 shows bearishの時間足, it may accelerate the selling pressure for a prolonged downfall.

Solana Price May Drop Further

A closer examination of key on-chain metrics reveals a downturn in user engagement, which may contribute to a bearish outlook for Solana price prediction.

According to data from TheBlock analytics, the number of new addresses engaging with the network decreased from 1.27 million on August 1st to 980.68k, reflecting a 22.79% reduction.

Furthermore, the active addresses metric also dropped from 2.09 million to 1.6 million, a 23.44% decline. These significant decreases in fundamental on-chain metrics indicate waning user activity, potentially heralding further declines in SOL’s market value if the trend persists.

Collectively, these observations suggest a bearish outlook for Solana price, with a potential for further declines if key support levels are breached and on-chain activity continues to deteriorate.

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