Solana's Institutional Access Expands in Brazil – Why Is SOL Still Struggling?

Solana SOL

Valour's recent approval to list on Brazil's B3 exchange has broadened institutional access to Solana, even as ETF inflows persist. However, the cryptocurrency's price remains unstable.

Key Takeaways:

Institutional investors are showing interest in Solana despite price fluctuations.
Valour has gained approval to list Solana on Brazil’s B3 exchange.
ETF inflows are steady, with significant assets being accumulated.
Current trading patterns indicate that Solana is in a phase of consolidation.
Market conditions and external factors are impacting price movement.

Expansion of Institutional Access in Brazil

On December 16, Valour received approval to list Valour Solana [VSOL] on Brazil's B3 exchange. This listing facilitates regulated access to Solana (SOL) in BRL, utilizing traditional brokerage and custody channels.

With this addition, Solana joins the ranks of Bitcoin [BTC], Ethereum [ETH], Ripple [XRP], and Sui [SUI] on B3. Valour’s move enhances Solana’s presence among institutional investors in a significant Latin American market.

Steady ETF Inflows Amid Exchange Supply Drop

According to data from the SoSoValue dashboard, Solana Spot ETFs have been experiencing net inflows. Daily inflows are approximately $3.64 million, totaling nearly $926.33 million in net assets.

Solana ETF Inflows

These consistent inflows have occurred alongside SOL’s stable price movement within its established range. Concurrently, SOL tokens have been leaving exchanges, leading to a decrease in the available supply for selling. This trend suggests accumulation rather than aggressive short-term trading.

Risks from Liquidity Clusters

The Binance Liquidation Heatmap indicates that there are significant liquidity clusters around the $123 level. This could increase the likelihood of a short-term price drop if the market remains weak.

Binance Liquidation Heatmap

Should Bitcoin continue its decline, SOL might lose its range support and drop towards the $95 area. This potential movement would likely reflect broader market trends rather than a distinct sell-off of SOL.

Can Bullish Momentum Return?

Currently, Solana is trading in the mid-range, with buyers yet to exhibit strong momentum.

The Relative Strength Index (RSI) is at 44.03, indicating weak demand below the neutral line of 50. Additionally, the MACD is showing a compressed state, suggesting that while bearish pressure is easing, it has not fully reversed.

Solana Price Chart

For Solana to regain higher value, it needs to break the $145 barrier to reach $170, thereby pushing towards its upper-range highs. A more substantial recovery could pave the way for movement into the $200 supply zone. However, these potential gains depend heavily on an improvement in overall market sentiment.

Conclusion

Solana is experiencing a significant expansion in institutional access, particularly in Brazil, despite facing price vulnerabilities. As ETF inflows remain consistent and liquidity risks linger, investors are closely monitoring market conditions for future price movements.