On Tuesday, July 30th, the Solana price shows a sharp downtick of 2.5% and is currently trading at $177. The intraday selling aligns with a broader market pullback as the U.S. Federal Reserve leaves interest rates unchanged at 4.25% – 4.50%. Amid the mounting selling pressure, the SOL price shows resilience above the $170 floor as market speculation surrounding Solana-based ETF gains traction.
Solana Rebounds on ETF Hopes
On Wednesday, the Solana price plunged to an intraday low of $170.29. However, the selling prices were quickly absorbed, which leaves a long-tail rejection candle. The renewed buying pressure could be linked to ETF-filling optimism from 21Shares and Invesco Galaxy.
Earlier today, 21Shares filed an updated version of its Spot Solana ETF (S-1 application) with the U.S. Securities and Exchange Commission (SEC). The filing marks a renewed push from the asset management company to gain regulatory approval to launch an SOL exchange-traded fund.
In addition, Invesco and Galaxy Digital also submitted paperwork for a spot Solana ETF with the Cboe BZX exchange. These proposed ETFs would hold actual SOL tokens, offering investors a regulated exposure to this cryptocurrency without the need to actually buy one.
If the SEC is satisfied, the ETF would attract institutional and retail inflows, significantly boosting Solana’s adoption and demand.
SOL Price Drive Steady Correction
Over the past week, the Solana price has shown a brief correction from $206.32 to the current trading price of $177.62, registering a 14% loss.
Interestingly, the correction resonated strictly within two converging trendlines, indicating the formation of a bullish continuation pattern called a ‘flag.’
The chart pattern is characterized by a long ascending trendline, a pole, which reflects the dominant trend in the market, followed by a temporary pullback to regain exhausted bullish momentum.
Amid the aforementioned price rejection, the coin price rebounds from the pattern’ support trendline to start a bull cycle within the flag channel. With sustained buying, the coin price should rise over 3.8% to challenge the overhead resistance trend.
An upside breakout from the flag resistance will offer buyers suitable support to resume the prevailing recovery and chase a potential target of $2.30.
However, the current correction trend could prolong if sellers continue to defend the overhead resistance trendline.
