Solana prices failed to recover above the 200-day Exponential Moving Average (EMA) despite Hong Kong’s Securities and Futures Commission approving the SOL ETF. However, the SOL is still on course with the bigger picture.
Bears plunge Solana price below $186
Just a few days ago, the Solana price was being supported by the 200-day EMA, which was close to $186; however, with the bear pressure mounting, even this strong support level could not keep Solana’s price from falling. The bears eventually plunged the price below this significant support level of $186, and SOL has found a temporary support near $179.The bulls gave it their all to push the prices above this level, but they could not defy the bears, not even the approval of the SOL ETF could excite the traders.
No excitement shown after SOL ETF approval
Usually, when a crypto ETF is approved, the community gets excited and starts purchasing the token; however, in the Solana case, it was not to be. The Securities and Futures Commission of Hong Kong approved the Solana ETF on Wednesday. This ETF will be the third approved ETF after Bitcoin and Ethereum. However, even this could not get the prices going above the 200-day EMA.
Solana price fluctuates inside falling wedge
Looking at the technical aspect of SOL, the token has been fluctuating inside a falling wedge, making lower highs and lower lows, since mid-September. Although the pattern name is ‘falling wedge’, this is a bullish pattern, where SOL breaks out upwards after completing the pattern.
Currently, SOL has rebounded off the upper trendline a couple of times, and it should technically reach the upper trendline once again, given that it continues the falling wedge pattern of making a new lower high.
When SOL continues this motion and rises towards the upper trendline, it will break through the 200-day EMA and the 50-day EMA. However, currently, the market is in a state of fear as the Fear and Greed Index shows that the traders are hesitant to take any extra risk. As such, we might not see a sudden spike, but the price might consolidate just below the 200-day EMA for some time.
The key takeaway is that as long as SOL is within the limits of the falling wedge, it could recover at any time. So as long as SOL does not fall below $170 and rise above $215, it means that the token is on course for a bullish breakout, despite falling or rising.
