Solana Price Plunges to $158: Can Bitwise’s Stake ETF Spark a Rebound?
The Solana (SOL) price has experienced a significant downturn, crashing to $158 despite the enthusiasm surrounding the launch of Bitwise’s staking-enabled Solana ETF, known as BSOL. This development has led to a testing of the lower bound of the historic $155-$165 demand zone, leaving investors wondering if the price will rebound or continue to sink.
A technical analysis of the SOL price reveals that it broke out of a symmetrical triangle pattern, which is often a precursor to sharp directional moves once market indecision dissipates. The breakout also resulted in the loss of a strong support confluence around $178-$180, where a horizontal level, the.382 Fib, and the 21 EMA converged. This break confirmed strong bearish momentum, with SOL price forming a lower low at $158. The price action is now testing the lower boundary of the key historical demand zone between $155 and $165, an area that has repeatedly attracted strong buying interest in the past.
Technical Indicators and Volatility
The BBWP indicator, which measures volatility, has risen to extreme highs, suggesting that momentum remains strong. However, as volatility peaks, the market may be approaching a short-term exhaustion point where a temporary rebound or consolidation could occur before the next directional move.
SOL price 4-hour chart | TradingView
On a daily basis, the BBWP is 65%, indicating that after the volatility reset on the 4-hour time frame, the market could resume the prevailing trend, potentially leading to another large move in the same direction. The next key level to watch is $155, a key support area within the tested historical demand zone. If SOL price fails to recover from the $155-$165 zone, there is a risk of a deeper correction towards the next support at $130-$140.
Impact of Bitwise’s BSOL ETF
The SOL price crash comes amid increased market attention following the launch of Bitwise’s BSOL, the staking-enabled Solana ETF that debuted on October 28. The ETF recorded $400 million in assets under management after its first week, surpassing Rex-Osprey’s SSK of $370 million. Going forward, its inflows remain an important catalyst for a possible upswing and trend reversal. For more information on the Solana price and the impact of the BSOL ETF, visit https://crypto.news/bsol-etf-fails-to-save-solana-as-sol-price-crashes-to-158-is-more-downside-ahead/
