While Solana’s price continues to struggle below a key technical level, a significant development in South America has provided a potential catalyst. Brazil’s primary stock exchange has approved a new investment vehicle for the cryptocurrency, offering a glimmer of institutional support during a period of widespread market fear.
Brazilian Exchange Greenlights Solana ETP
In a move that could channel regulated capital into the asset, Brazil’s leading exchange, B3, has granted approval to asset manager Valour for a Solana Exchange Traded Product (ETP). This marks the first time Brazilian investors will have access to SOL through a regulated financial product, representing a notable advancement for institutional adoption in a region known for its crypto-friendly stance.
Brazil has positioned itself as a frontrunner in digital asset integration. The launch of this official investment channel could serve as a medium-term stabilizing force, providing a vote of institutional confidence at a time of significant market unease.
Price Action Remains Under Pressure
Despite this positive news, SOL’s market performance tells a different story. The cryptocurrency is currently trading around $126, having tested the $122 zone earlier this week. This places it firmly below the psychologically significant $130 threshold. Since reaching a yearly high near $294 in January, SOL has shed more than half of its value.
A modest 24-hour gain of nearly 2% suggests some buying interest at lower price levels, but the overall lack of momentum is telling. Analysts note that the prevailing downtrend remains intact until SOL can decisively reclaim and hold above the $130 mark.
Should investors sell immediately? Or is it worth buying Solana?
Whale Activity and Long-Term Development
On-chain data presents a mixed narrative. Analytics firm Arkham Intelligence flagged a substantial transaction early today involving 27,617 BNSOL (Binance Staked SOL), valued at $3.59 million. The funds moved from an anonymous wallet to a known Binance deposit address. Such large inflows to exchanges often precede selling pressure, though they can also indicate routine liquidity management for staking products.
Looking beyond short-term volatility, the Solana Foundation is progressing with future-focused security enhancements. In partnership with Project Eleven, it is testing quantum-resistant signatures on its testnet—a development aimed at addressing long-term security concerns for institutional investors.
Key Levels to Watch
The overall crypto market sentiment, as measured by the Fear & Greed Index, sits at a level of 16. Historically, this “extreme fear” zone can signal either impending capitulation or contrarian buying opportunities. For SOL, the immediate technical levels are clear.
A sustained breakout above $130 resistance is needed to validate the positive impact of the Brazilian ETP news and could open a path toward $145. Conversely, a breakdown below the $120 support level may trigger a new wave of downward volatility. The coming sessions will be critical in determining which direction prevails.
Ad
Solana Stock: Buy or Sell?! New Solana Analysis from December 21 delivers the answer:
The latest Solana figures speak for themselves: Urgent action needed for Solana investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 21.
Solana: Buy or sell? Read more here...