Solana Outlook: Will SOLUSD Hold $180 Support?

Q3 Performance: Solana’s Impressive Rally

SOLUSD pumped 16.5% on the Binance exchange in August and advanced another 3.9% in September, posting a 34.7% gain in Q3.

However, the price action turned south in early October, or the beginning of Q4, and was last trading 11.7% lower month-to-date.

ETF Approval Brings Fresh Institutional Attention

In crypto industry news, the first spot ETF fund using Solana as the underlying asset was approved for trading on the Hong Kong Stock Exchange, with the debut session scheduled for October 27.

The minimum investment requirement stands at $100.

Analysts at JP Morgan said the ETF could pull in around $1.5 bn in its first year – far less than what was projected for an Ethereum-backed ETF.

Technical Picture: Support at $186 and $180

Technically, as noted in our previous Solana overview, two scenarios could be in the cards for SOLUSD.

The optimistic scenario, where the asset would extend the uptrend to $225 and then $265 looked more likely at that time.

The token failed to reach those targets, reversing lower from $253.6 instead.

Bullish vs Bearish Scenarios for Q4

The price action has already pulled back to the lower bound of the regression channel at $186.8, where the 200-day MA also lies.

Going forward, SOLUSD will likely rebound from this support line and retrace on the upward track, in which case the immediate target would be $210 again.

Alternatively, the pessimistic scenario calls for a breakdown of $180 and the next target at $170.

Then the bears could set their sights on $155.9, a horizontal support line formed by local lows seen in early August.

The odds of this scenario materializing look slim for the time being.