- 21Shares introduced a new Solana ETF, trading under the ticker TSOL on the CBOE
- The Solana price retests the bottom trendline of a falling channel pattern, signaling a risk of prolonged correction.
- The 20-day EMA slope acts as dynamic resistance against SOL buyers.
SOL, the native cryptocurrency of the Solana blockchain, fell 6.34% during Wednesday’s U.S. market hours to trade at $131.86. The selling pressure aligns with the current correction momentum in the broader crypto market as Bitcoin plunged below $90,000. Despite a wave of new Solana-based exchange-traded funds entering the market, including today’s 21Shares spot Solana ETF (TSOL), the sellers continue to hold their control over the price. Will SOL lose the $125 floor?
21shares Debuts Solana ETF on CBOE
The newest addition to the crypto-linked exchange products in the United States came with 21Shares’ launch of a Solana-focused ETF with the ticker TSOL, issued on the CBOE. The fund would provide its investors the exposure to the price performance of SOL, along with staking rewards to exchange profit potential. The total expense ratio set by the company was 0.21%.
Before TSOL, the asset management firm had already introduced two crypto ETPs in the U.S. market: the 21Shares Ethereum ETF (TETH), which was launched in July 2024, and the ARK 21Shares Bitcoin ETF (ARKB) in early 2024.
TSOL, however, operates under no framework of the Investment Company Act of 1940 and thus does not carry the regulatory guardrails that are attached to conventional ETFs. Its issuer makes a specific note that the product may go through pronounced swings and that investors should be prepared for the possibility of a complete loss. The fund also does not amount to direct ownership of SOL.
Interest in Solana has increased along with growing activity on the network, which has become a popular place for applications that are linked to payments, stable-value tokens, trading platforms, and privacy-oriented tools. Developer traction has accelerated as well, with research firm Electric Capital finding a sharp rise in active builders during 2024.
That kind of momentum has contributed to wider anticipation for Solana’s potential role in applications such as systems supported by artificial intelligence or decentralized infrastructure.
The Solana ETF launch comes shortly after 21Shares started integrating its operations with FalconX. FalconX operates a large crypto brokerage and liquidity platform, and the merger looks to offer a unique combination of asset management offerings alongside trading, financing, and structured products.
Solana Price Stands At Make-or-Break Floor
With an intraday sell-off of over 6.4%, the Solana price retested the support trendline of a falling channel pattern in the daily chart. Over the past two months, the coin price has visited the bottom trendline multiple times, allowing buyers to temporarily boost bullish momentum and drive a recovery ranging from 18% to 26%.
If history repeats, the coin price could rebound roughly 32% and hit the upper boundary at the $173 mark. The potential upswing won’t be enough to reverse the ongoing downtrend until the price remains below the overtrendline. Thus, an upside breakout is key to recoup buying pressure and change market direction.
However, the current downsloping trend in exponential moving averages (20, 50, 100, and 200) signals that the path of least resistance is currently downward. Thus, a bearish breakdown below the channel support will accelerate the selling pressure and may push the Solana price towards the $100 psychological level.
Also Read: Fidelity Set to Enter Solana ETF Arena with FSOL Launch
