Despite the application for a spot Solana ETF in Canada by Canadian cryptocurrency asset management company 3iQ, the price of #Solana (SOL) is moving on a downward trajectory. This ongoing negative price movement indicates a growing apathy towards the altcoin among investors. As questions arise about Solana's future, many people wonder whether SOL can regain its lost value. We will explore potential short-term price targets for SOL by examining recent price analysis and provide insight into whether a spot ETF filing could help Solana regain momentum.

Price Recovery Potential

The Simple Moving Average (SMA) has consistently acted as a resistance level for Solana's SOL since the beginning of the month, reinforcing the strong bearish trend. The Relative Strength Index (RSI) also failed to cross its neutral point and its average showed a continuous decline. This trend indicates an increase in selling pressure, pushing the RSI towards the oversold range. These technical indicators reflect the challenges SOL is facing in the current market.

Despite the prevailing downtrend, there are scenarios where SOL could potentially rise. If the market manages to keep Solana's price above the key support level corresponding to $127, there is a possibility that the altcoin will regain momentum. In such a scenario, SOL could test the resistance level at $155. A continuation of the bullish trend in the market could push SOL's price towards the upper resistance level at $181.50.

Moves from companies like 3iQ for Spot Solana ETFs could act as a catalyst for a price recovery by attracting new investors and increasing market confidence. As it is known, ETFs generally attract more institutional investments into the market. This could allow the price of SOL to stabilize and potentially rise.

However, the immediate impact for spot ETFs remains uncertain, and the market's response to these applications will be crucial in determining their impact on SOL's price trajectory.

Obstacles for Solana

On the other hand, if the downward trend continues, SOL may have difficulty maintaining important support levels. Failure to hold the support level at $127 could lead to further declines, with SOL potentially falling towards the lower support trend line corresponding to $100.

While this scenario indicates a deeper downtrend, it could prevent the price from accelerating by keeping potential investors away from reinvesting in the altcoin.