Market Insights: The Effects of ETF Approval on Solana, Ethereum, and Cardano Prices

• If Solana fails to maintain the $160 support, it may seek the next support level at $150.
• Ethereum did not see the expected price increase following the ETF approval, maintaining a lukewarm market response.

Solana (SOL) recently saw a 10% decline in its value, following what seemed like a favorable setup due to the preliminary approval of an Ethereum ETF. This decrease has led to concerns about Solana’s strength compared to other cryptocurrencies. A closer look at its trading data reveals that Solana dropped from $176 to $164. 

Currently, Solana is testing a crucial support level at $160, which had previously served as a reliable base. If Solana fails to maintain this level, the next critical support level could be $150, aligning with its 200-day moving average.

Resisting further losses, Solana encounters its immediate challenge at the $176 mark, which it had trouble sustaining before the recent decline. Beyond this point, the next significant resistance is near $190, coinciding with the 50-day moving average. Overcoming these levels is essential for Solana to potentially regain its lost value.

The factors contributing to Solana’s recent fall include mixed reactions to the Ethereum ETF approval and technical triggers such as the failure to uphold crucial resistance points, which may have prompted stop-loss orders and hastened the sell-off.

For investors, maintaining above the $160 support is crucial. Breaking below this point could foresee a decline towards $150, suggesting a possible extended downward trend.

In contrast, Ethereum’s price response to the ETF news was subdued, defying the expected positive outcome. The approval, which was not comprehensive and remains open to regulatory scrutiny, has introduced uncertainty affecting Ethereum’s price stability.

Despite these challenges, the recognition of an Ethereum ETF, even in a limited capacity, underscores a step forward in the cryptocurrency sector’s broader acceptance.

Cardano (ADA) exhibits a steadier market behavior, not typically prone to high volatility. Recently, it has established a new support level at $0.45, which has consistently held against downward trends, indicating sustained interest at this price. 

Cardano’s next resistance is at $0.50, where it has faced rejection in recent attempts to rise. Surpassing this resistance could propel ADA towards a target of $0.55, aligning with the 200-day moving average.