Can Solana ETF approval in Brazil and trader interest push the price higher?

• Brazil officials approve a Spot Solana ETF, a key milestone for rival Ethereum token.
• PayPal’s stablecoin supply on Solana surpasses that of Ethereum, and the network sees an increase in transactions.
• SOL is hovering around $145 and could extend gains by 20% to reach the $175 target in an optimistic scenario.

Solana (SOL) has been a victim of the recent decline in crypto asset prices, but several fundamental and on-chain factors appear to support a bullish outlook for the Ethereum competitor. The approval of a Solana Exchange-Traded Fund (ETF) at sight by the Brazilian Securities and Exchange Commission, the increase in the supply of PayPal stablecoins (PYUSD) on the Solana chain and interest from traders are three key factors to take into consideration.

SOL is trading at $144.32 at the time of writing.

Solana developments could catalyze gains

• Solana is up more than 30% from its August 5 low of $110, but is still well below the July 29 high of $194. The killer cryptocurrency Ethereum has three key market factors that could influence the price this week.
• The Solana Spot ETF has been approved by Brazil’s Securities and Exchange Commission, a key milestone for Solana as it could pave the way for a similar investment product in the US and UK markets in the future. Asset manager VanEck predicted a Solana ETF in the US market, British bank Standard Chartered predicted the arrival of the SOL ETF is likely in 2025.
• The supply of PayPal stablecoin (PYUSD) has surpassed $377 million on Solana, surpassing the supply of the asset on Ethereum, according to DeFiLlama data. Meanwhile, on Ethereum, PYUSD crossed the $356 million mark, data shows.
• Solana transactions have increased over the past sixty days, according to Dune analytics data. This signals increased activity and interest from traders.

Solana number of successful transactions

These positive developments and increased chain activity could catalyze gains in SOL in the coming months. BitMEX founder and crypto entrepreneur Arthur Hayes set a $250 goal for the token in a recent blog post.

Solana could extend gains to $175

Solana has been trading sideways since the March 18 top of $210.18, as seen on the SOL/USDT daily chart. The altcoin could extend gains by 21.30% and rise towards its target of $175, the level that has acted as key resistance for Solana since mid-April.

Before reaching it, SOL faces resistance at the psychological level of $150.

The Relative Strength Index (RSI), a momentum indicator, is reading 44.13 on the daily chart, near the neutral level. This suggests indecision among traders.

SOL/USDT Daily Chart

On a decline, SOL could find support in the fair value gap (FVG) between $139.37 and $142.21. A daily candle close below $142 could invalidate the bullish thesis. In this scenario, SOL could sweep liquidity into the disequilibrium areas below $142.