Solana Price Plunges 1.4% as VanEck Enhances Staking for SOL ETN

Highlights:

• Solana is forming an ascending triangle with resistance at $168.16, signaling a possible breakout to $177-180.
• Key support levels for SOL are at $165.37 (MA50) and $157.24 (MA200) in case of a downward move.
• VanEck’s Solana ETN now features automated staking, helping drive potential price recovery for SOL.

The Solana price plunged 1.4% in the last 24 hours to trade at $164 as of 4 a.m. EST, driven by a 3% surge in trading volume to $4.4 billion. Now, the market capitalization stands at $77 billion.

In light of optimistic forecasts for Solana (SOL), asset manager VanEck has enhanced its Solana exchange-traded note (ETN) by introducing an automated staking feature designed to support SOL’s price recovery.

Solana News: @vaneck_us introduces staking to their #Solana ETN $VSOLhttps://t.co/zlXCiLV95l pic.twitter.com/1gnAIeKoYw

— MartyParty (@martypartymusic) October 21, 2024

The updated staking rules for VanEck’s Solana ETN, trading under the ticker VSOL, allow for daily earning and reinvestment of rewards. This enhancement intends to attract more investors. VanEck also clarifies that the staking process is non-custodial, meaning the custodian maintains full control of the staked SOL, thereby minimizing the risks typically associated with crypto lending.

Also, investors in the Solana ETN don’t have to do anything to get their staking rewards. These rewards will automatically be added to the ETN’s coin entitlement, ensuring everyone gets their fair share minus a 25% staking fee.

The staking rewards will appear in the daily end-of-day net asset value (NAV), with a cutoff at 4 PM CET. This way, investors can enjoy the benefits of staking without the usual hassles of managing crypto assets.

Solana Statistics

• SOL Price: $164
• Market capitalization:$77 billion
• Trading volume: $4.4 billion
• Circulating supply: 470 million
• Total supply: 586 million

Solana Price Signals a Bullish Rally Ahead

In the 1-hour chart of Solana price, there is an apparent pattern of an ascending triangle, which usually tends to be bullish. At the time of writing, SOL changes hands at $168.16, right on the horizontal resistance line of the triangle. In the ascending triangle, higher lows are set on a horizontal resistance level. This sets up indications that the price will soon break upwards if the resistance at the $168.16 level keeps being tested.

The setup is clearly resistant at $168.16, which is well under attack. On the other hand, for support, an upward trendline forms the base of the triangle, with some dynamic support from SMA50 at $165.37. SMA 200 adding more support at $157.24, which could be crucial in a downside movement.

Technical Indicators Signal a Bullish Breakout

Relative Strength Index: The current RSI is 56.61, which means the market is neither overbought nor oversold. It gives room to move up or down in either direction, though the pattern does suggest a more probable bullish breakout. If SOL breaks above the resistance line at $168.16, the potential target may be around $177-$180 based on the triangle’s height.

On the other hand, if resistance is not broken and the price drops below the ascending trendline, the first support zone will be formed around $165.37, and more significant support levels will be at $157.24, close to the 200 SMA.

Moreover, a break below that level could signal a bearish reversal. Overall, Solana’s price action indicates a possible upside breakout at a target range of $177-180, but traders should be on their guard for a breakdown below support levels.